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GAO-13-178R 1 (2012-12-05)

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           GAO
         Accountablty *Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


            December 5, 2012

            The Honorable Max Baucus
            Chairman
            Committee on Finance
            United States Senate

            Subject: Medicaid and CHIP: Considerations for Express Lane Eligibility

            Dear Mr. Chairman:

            Each year, millions of children do not have health insurance coverage even though
            they are eligible for Medicaid or the Children's Health Insurance Program (CHIP),
            two joint federal-state programs that provide health insurance to certain low-income
            individuals.1 Additionally, each year, some children lose Medicaid or CHIP coverage
            for which they are eligible and then, after a short coverage gap, reenroll-a process
            that is costly to the programs administratively, as well as burdensome for families.2
            The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA)
            provided states with new incentives and tools to simplify eligibility determinations
            and increase the enrollment and retention of children in Medicaid and CHIP. One of
            these tools is Express Lane Eligibility (ELE), which allows states to determine
            eligibility for children in Medicaid or CHIP by using certain information, such as
            information from other public-assistance programs that enroll children.3 Specifically,
            within certain limits, ELE allows a state Medicaid or CHIP agency to use another

            1Medicaid finances health insurance for certain categories of individuals, including low-income
            children; CHIP is an insurance program for certain low-income, uninsured children whose family
            income is too high for Medicaid. Under Medicaid and CHIP, states pay qualified health care providers
            for covered services given to enrolled beneficiaries, and then seek reimbursement for the federal
            share of those payments.
            In fiscal year 2010, 34.4 million children had health coverage through Medicaid, and 7.7 million
            children had health care coverage through CHIP, while approximately 8 million children were
            uninsured. The specific factors considered in determining eligibility for Medicaid and CHIP vary
            across states and generally involve income, disability status, residency, age, and citizenship.
            2For example, many children who are still eligible lose coverage because the family failed to respond
            accurately or on time to notices to renew eligibility (children's enrollment must be renewed at least
            once a year). Some children disenroll from CHIP or Medicaid because they are no longer eligible or
            obtain private coverage.
            3pub. L. No. 111-3, § 203(a), 123 Stat. 8, 40 (2009) (codified, as amended, at 42 U.S.C.
            § 1396a(e)(1 3)). Under CHIPRA, the ELE option may only be used for Medicaid and CHIP eligibility
            determinations for children and cannot be used for parents or other adults. CHIPRA established new
            performance bonuses for states adopting at least five of eight specified policies to simplify Medicaid
            and CHIP enrollment and retention procedures for children; one of the specified policies was ELE.
            States are eligible for these performance bonuses for fiscal years 2009 through 2013. See Pub. L.
            No. 111-3, § 104, 123 Stat. 8, 17-23.


GAO-1 3-178R Express Lane Eligibility


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