Waiver Watch

A growing number of states are seeking to expand coverage for uninsured residents using Health Insurance Flexibility and Accountability (HIFA) and other Section 1115 Medicaid waivers.

The chart below outlines recent waiver activity and the implications for mental health and substance abuse coverage. The good news is that most states are exempting behavioral health benefits from reductions. However, states’ may be forced to reevaluate benefits and cost sharing if expenditures during the waiver program implementation are higher than estimated.  

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With this in mind, mental health advocates must exercise continued vigilance in monitoring waiver processes, contributing to public comment about Medicaid reform proposals and communicating with Medicaid officials about the importance and cost-effectiveness of including mental health services in even the most basic benefits packages.   (This chart will be updated periodically.)

State

Expansion Population

Basic Structure

Impact on Mental Health Benefits

Arizona

Waiver Type: HIFA

Program: Arizona HIFA Amendment

Implementation:

11/1/01 (Phase 1)
10/1/02 (Phase 2)

 

·  Phase 1: 27,000 Childless adults up to 100% of FPL

·  Phase 2: 21,250 Parents of children in SCHIP or Medicaid, who are between 100% and 200% of FPL

Benefit package is identical to 1115 acute care and SCHIP benefit packages. 

No change to current benefits.

Arkansas

Waiver Type: HIFA

Program: Arkansas Safety Net Benefit Program

Approval: Pending

55,000 Arkansas residents of all incomes up to 200% FPL

Employer Sponsored Insurance (ESI): once employer elects to participate, eligible individuals will receive SCHIP benefits package.

 

 

Patients limited to 6 clinic visits, 2 outpatient hospital visits, 2 prescriptions, and 7 inpatient days per fiscal year. 

California

Waiver Type: HIFA

Program: California Parental Coverage Expansion

Implementation: 7/1/02

275,000 parents, relative caretakers and legal guardians with net incomes up to 200% of FPL not eligible for Medi-Cal

Similar to SCHIP and state employees’ benefit packages. 

No change to current benefits. 

Colorado

Waiver: HIFA

Program: Adult Prenatal Coverage in CHP+

Implementation: 10/8/02

 

Uninsured pregnant women 134-185% of FPL who are not otherwise eligible for Medicaid or SCHIP

Same as SCHIP benefit package

Mental health coverage limited to 45 inpatient days and 20 outpatient visits per year

Delaware

Waiver Type: HIFA

Program: Delaware

Healthy Adult Program

Disapproval Issued: 3/19/03

 

Sought to use SCHIP funds to provide services to groups already covered by Medicaid.  This is not allowed under HIFA rules.

 Same as SCHIP  

 benefit package.

Would have provided extended 31 day mental health benefits for adults.

Idaho

Waiver Type: HIFA

Program: Idaho Access Card

Approval: Pending

 

1,000 adults up to 185% FPL and all children above mandatory Medicaid levels but below 185% FPL. 

Premium assistance for employer-sponsored insurance. 

Dependent upon the specifics of the employer’s insurance plan. 

Illinois

Waiver Type: HIFA

Program: KidCare Parent Coverage

Implementation: 10/1/02

 

·  Children 133-185% of FPL with private insurance at the time they enroll, who receive direct coverage or premium assistance, subject to an enrollment cap

 

·  Parents 39-90% of FPL, who receive direct coverage or premium assistance, subject to an enrollment cap

 

·  Premium Assistance: Monthly subsidy up to $75/person to purchase private insurance

 

·  Direct Coverage: Either the states’ Medicaid or SCHIP benefit package

Substance abuse care for parents limited to 100 outpatient hours and 30 inpatient days.  Nominal copays for  substance abuse/mental health visits.  

Maine

Waiver Type: HIFA

Program: MaineCare for Childless Adults

Implementation: 10/1/02

 

11,500 childless adults with incomes up to 125% FPL

Same benefit package as SCHIP and the Maine Medicaid program (MaineCare)

No change to current benefits.

Michigan

Waiver Type: HIFA

Program: Adults Benefits Waiver program

Implementation:1/16/04

 

62,000 childless adults at or below 35% FPL

The benefit package includes inpatient, outpatient, physician’s surgical and

medical services, laboratory and x-ray services, pharmacy and mental health and substance

abuse.

 

No change to current Medicaid benefits package.  Mental health and substance abuse services provided through a behavioral managed care carve-out.  

Minnesota

Waiver Type: HIFA

Program: Minnesota HIFA proposal

Application Inactive as of 7/1/02

 

Waiver application did not meet the Maintenance of Effort (MOE) requirement of the HIFA demonstration program. 

Would have provided expanded health

insurance coverage to an additional 115,000 residents of the State of Minnesota with

incomes at or below 275% of FPL. 

 

N/A

N/A

New Jersey

Waiver Type: HIFA

Program: New Jersey Standardized Parent Service Package

Implementation: 9/1/02

 

12,000 uninsured custodial parents and caretaker relatives of children eligible for title XIX or

title XXI who are not Medicaid eligible, and have family incomes up to and including 133% of  FPL.

 

The most widely used HMO package with the largest commercial

non-Medicaid enrollment marketed in New Jersey.

 

Hospital Services for Mental Health

limited to 35 days per year.

Outpatient Mental Health Services limited to 20 visits per

year, $25 co-pay.

 

New Mexico

Waiver Type: HIFA

Program: New Mexico State Coverage Initiative

Approval: 8/23/02

 

29,000 parents between 37 and 200% of FPL; 11,000 other adults up to 200% of FPL

Premium assistance for a state-established reduced commercial benefit package.  Tiered copayment system. 

Mental health inpatient/ outpatient hospitalization services limited to 25 days per year; substance abuse care limited to 10-30 days per year

Oregon

Waiver Type: HIFA

Program: The Oregon Health Plan 2

Implementation: 11/1/02 through 7/1/03

 

OHP Plus: Children and pregnant women 170-185% FPL

OHP Standard: Parents and other adults 100-110% FPL

FHIAP: Children and pregnant women 170-185% FPL who choose FHIAP; Parents and other adults 100-185% FPL

 

OHP Plus: State’s basic Medicaid benefit package

OHP Standard: Reduced Medicaid benefit package

FHIAP: Premium Assistance

OHP Plus: No change

OHP Standard: Coverage eliminated effective March 2003

FHIAP: Mental health and chemical dependency are covered but there is no specification about durational limits or cost-sharing