September 16, 2005 -- HHS Streamlines Medicaid Benefits for Evacuees

In the latest of a series of announcements calling attention to what the Department of Health and Human Services (HHS) is doing for victims of hurricane Katrina, HHS Secretary Mike Leavitt said yesterday that Texas is being allowed to extend Medicaid or SCHIP benefits to evacuees who can’t document their prior eligibility, with the federal government picking up the full cost of those benefits instead of the usual federal/state cost sharing. Under the waiver, medical services will be delivered through Texas programs to evacuees who are children up to age 19 and their parents, pregnant women, individuals with disabilities, and low-income Medicare beneficiaries. The program will last through January 31, 2006. Evacuees who receive services through Texas Medicaid or SCHIP programs will not be charged any out-of-pocket costs during the temporary enrollment and will receive the standard Texas Medicaid benefit package plus some additional benefits such as additional mental health coverage. Since the agreement leaves childless adults without medical coverage, the government is also creating an “uncompensated care pool” to help compensate physicians, hospitals, and other health care providers who provide needed medical treatment to evacuees who do not currently have health insurance and are ineligible for Medicaid or SCHIP. Secretary Leavitt emphasized that while Texas is the first state to receive such a waiver, all states have been notified that they can participate in similar arrangements.