CMS August 17 Directive

In a August 17 letter to health officials (and May 7, 2008 clarifying letter), the Centers for Medicare and Medicaid Services (CMS) established guidance to states already covering or planning to cover children with incomes above 250 percent of the federal poverty level (FPL). In order to obtain federal funds to cover children in moderate-income families, states must ensure that:
  • At least 95 percent of children in the state with family income below 200 percent of the FPL have coverage.
  • More on the 95% Coverage Rate Requirement

  • Employer-sponsored insurance for children below 200 percent of the FPL has not dropped by more than two percentage points over the prior five years. More on the Private Coverage Decline Requirement
If a state meets these new standards, CMS requires that states a 12-month waiting period and the maximum cost sharing permitted by law. More on the Waiting Period and Cost Sharing Requirements

Read a CCF Fact Sheet on the directive.

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News

(8/15/08)

CMS announces that it will not take compliance action under the directive against states that have approved SCHIP plans. See CCF Statement on news.


(7/22/08)

Senate Parliamentarian  determined resolution not filed in time to have "privileged" status under Congressional Review Act. Read Senator Baucus's Press Release.


(7/18/08)

Senate introduced resolution to nullify the directive. View CCF's statement on the resolution.


(5/22/08)
Senate included rescission of the directive in the Iraq supplemental bill.


(5/8/08)

Reps. Pallone and Shea-Porter introduced legislation to block the directive.