CMS Releases Initial Guidance on Health Care Reform Law

On April 9, 2010, the Centers for Medicare and Medicaid Services (CMS) released a State Medicaid Director letter on health care reform—the first in a series of letters intended to provide guidance on implementation of the new health care reform law. Specifically, this letter provides information on the new state option for providing Medicaid coverage to low-income individuals at or below 133% of the federal poverty level (FPL). This option is available until January 1, 2014, when Medicaid eligibility is mandatory for this group. States that elect this option can provide assistance as of April 1, 2010, and receive federal reimbursement at their regular Federal Medical Assistance Percentage (FMAP). States that currently provide coverage to low-income adults through a Medicaid waiver or state-funded program could see state savings as a result of this option.