AG 2000 12 18 - Laserfiche WebLink

Home Browse Search

DMA ADMINISTRATIVE LETTER N0.11.01 Date: Subject: September 26, 2000 Special ReimburSement for Administrative . Costs Attributed t'o De-.Linking Medicaid from Cash. Assistance , Distribution: BACKGROUND County Directors o1' Social Services Family and Children's Medicaid Supervisors Work First Supervisors COPY Title I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 replaced the open-ended funded Aid to Fm-nilies with Dependent Children (AFDC) cash assistance program with the block grant-funded Temporary Assistance for Needy Families (TAtNF) program. Previously, ~'amilies that received cash assistance under the AFDC program automatically received Medicaid eligibilitT. Under section 1931 Of the Social Security Act, state agencies must'provide Medicaid eligibility to those Iow-income families meeting the eligibility requirements for AFDC under the States' AFDC State plans in effect as of July 16, 1996. To assist State Medicaid agencies with the additional administrative costs the le~slation appropriated $$00 million for states. The Health Care Financing Admh:dstmtion (HCFA) allocated a portion of the $500 million to each state. North Carolina's share of that total is $11,550,703. The Depa~uaent of Heaith and Human Services will allocate $7.5 million for counties and $2 million will be divided among DHHS state agencies(DSS, DMA and DIt~'vf). The state-level portion will..be used to create new handbooks for outreach purposes, and upgrade EIS in regards to delinking Medicaid and Work First. The remaining $2 million will be held and reailocated at a later date. ? The counties may claim Federal funding for allowable activities against the allocation at tv,-o rates: a 90% enhanced Federal matching rate for specified ac. tivities considered critical to protecting recipients; and a 75% enhanced Federal matching rate for other allo,;vabte activities.