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1 1 (March 8, 2006)

handle is hein.crs/crsaitn0001 and id is 1 raw text is: Order Code RS22035
Updated March 8, 2006
CRS Report for Congress
Received through the CRS Web
Coverage of the TANF Population
Under Medicaid and SCHIP
Elicia J. Herz
Specialist in Social Legislation
Domestic Social Policy Division
Summary
Health insurance is an important support for individuals receiving, leaving or
diverted from the Temporary Assistance for Needy Families (TANF) welfare or cash
assistance program for low-income families. Medicaid and SCHIP (State Children's
Health Insurance Program) are key vehicles for providing such coverage. While there
is no formal link between TANF and either Medicaid or SCHIP, some TANF-eligibles,
especially children, are likely to qualify for one of these programs. But state eligibility
rules can be complex and often differ for parents versus children, leaving some parents,
in particular, without coverage. Finally, six to 12 months of transitional medical
assistance (TMA) for families losing Medicaid coverage for work-related reasons
expired on December 31, 2005, but was reinstated retroactively to this date, and
extended through 2006 under the Deficit Reduction Act of 2005 (P.L. 109-17 1).
Background
Medicaid provided access to medical services for approximately 55.4 million people
in FY2003 (the latest official enrollment figure). To qualify, applicants' income and
resources (also called assets) must be within program financial standards. These
standards vary considerably among states, and different standards apply to different
population groups within a state. Medicaid eligibility is also subject to categorical
restrictions - generally, it is available only to low-income persons who are aged, blind,
disabled, members of families with dependent children, and certain other pregnant women
and children.
The Temporary Assistance for Needy Families (TANF) program provided cash
assistance to 2.2 million families in FY2003. TANF is structured as a flexible block grant
to states, and it was the centerpiece of the 1996 welfare reform law, replacing previous
entitlements to cash assistance. Under TANF, eligibility thresholds and benefit levels are
established by states, but federal law imposes work requirements and time limits on
benefits.

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