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                                                                                          Updated February 25, 2020

Medicaid Coverage for Former Foster Youth Up to Age 26


Children may enter foster care due to incidents of abuse,
neglect, or some other reason that prevents them from
remaining with their families. During FY2018, some
687,400 children spent at least a day in foster care. Of the
250,000 children who exited foster care that year, nearly
18,000 emancipated at 18 (or an older age, up to 21, if
states extend care). In this context, emancipation means
reaching the state legal age of adulthood and not being
reunified with family or placed in a new permanent family.
The Patient Protection and Affordable Care Act (ACA, as
amended; P.L. 111-148) required states, as of January 1,
2014, to provide Medicaid coverage to youth who have
emancipated until their 26th birthday. The U.S. Department
of Health and Human Services' (HHS') Centers for
Medicare & Medicaid (CMS), which administers the
Medicaid program, issued a proposed rule in January 2013
and a final rule in November 2016 to specify additional
parameters about youths' coverage under the program.

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Medicaid, authorized in Title XIX of the Social Security
Act (SSA), is a federal-state program that jointly finances
medical and related services to a diverse low-income
population. To be eligible for Medicaid, individuals must
meet both categorical (e.g., elderly, children, or pregnant
women) and financial (e.g., income, assets) criteria in
addition to requirements regarding residency, immigration
status, and U.S. citizenship. For some eligibility groups or
pathways, state coverage is mandatory, while for others it is
optional. States and territories (states) must submit a state
plan to the federal government to describe how they will
carry out their Medicaid programs within the federal
statute's framework. States that wish to make changes
beyond what the law permits may seek CMS approval to
waive certain statutory requirements to conduct research
and demonstration waivers under Section 1115 of the SSA.
The Foster Care, Prevention, and Permanency program,
authorized in Title IV-E of the SSA, is a federal-state
program that, among other things, jointly finances foster
care for children who a state determines cannot safely
remain in their homes and who meet federal eligibility rules
related to being removed from a low-income household and
other factors. The program also provides some support for
services to assist older children in foster care, and those
who age out, in making a successful transition to adulthood.
The Administration for Children and Families (ACF) at
HHS administers the Title IV-E program.
While in foster care, nearly all children are eligible for
Medicaid under mandatory eligibility pathways. This means
that states must provide coverage because these children
receive assistance under the Title IV-E foster care program,
are disabled, or meet other eligibility criteria. Under the


Title IV-E program, states must inform foster youth within
90 days prior to emancipation about their future options for
health care. Title IV-E also directs states to provide these
youth with health information and, as of early 2018, official
documentation that they were previously in care. Such
documentation may be necessary to determine eligibility for
some former foster youth who later apply for Medicaid.


Young people who age out of foster care can have
significant health needs. In a sample of former foster youth
at age 21 in the Midwest, 11% had a health condition or
disability that limited their daily activity, compared to 5%
of their same-age peers in the general population. The
Medicaid pathway for former foster youth is intended to
provide necessary health supports in the years immediately
after leaving foster care. It parallels another ACA
requirement that health insurance companies provide
coverage of children up to age 26 under their parents'
private health care plans.
Medicaid regulation requires states to determine whether
current beneficiaries, including youth emancipating from
foster care, are eligible for other Medicaid pathways to
avoid gaps in coverage. Upon emancipating from foster
care, youth may be eligible for mandatory Medicaid
pathways available to adults (e.g., pregnancy or disability
pathways). If determined eligible, they are to be enrolled
via these other pathways (with the exception of a pathway
for non-elderly low-income adults that was established
under the ACA). However, if these young people do not
qualify for other mandatory pathways, or states do not have
sufficient information to determine such eligibility, they are
to be enrolled in the mandatory Medicaid pathway for
former foster youth without interruption in coverage.
To be eligible for the former foster youth pathway,
individuals must (1) be under age 26; (2) have been in
foster care under the responsibility of the State upon
reaching age 18 (or any age up to 21 if the state extends
federal foster care to that age); and (3) have been enrolled
in Medicaid while in such foster care. Unlike most
eligibility pathways, the former foster youth pathway is
available to eligible youth regardless of income.
Based on a 2018 national survey of former foster youth who
were age 21 in FY2018, approximately 64% had Medicaid,
18% had some other health insurance, and 19% had neither.
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In the November 2016 final rule, CMS recommended that
states use automated transition of eligible individuals to the
former foster youth pathway if they are not eligible for
other mandatory eligibility pathways. However, some
former foster youth, such as those who emancipated before


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