"Until passage of the Deficit Reduction Act of 2005, states had few options, other than through waivers, to update the health benefit packages offered through their Medicaid programs to meet the needs of the people they serve," Weems said. "These changes allow states to use modern methods of providing health insurance coverage and encourage families to participate in their own health care decisions."

CMS also published a final rule that gives states the flexibility to change current premiums and cost sharing requirements. The rule implements Sections 6041, 6042, and 6043 of the DRA, and closely follows what is allowed under SCHIP. Individuals with family income below 100 percent of the federal poverty level (FPL) can be charged only "nominal" cost sharing and premiums. Higher out-of-pocket charges can be charged to individuals with incomes above 150 percent of the FPL. As in SCHIP, all cost sharing must be limited to no more than 5 percent of the family's income. The 2008 FPL for a family of four is $21,200.


Both final rules are available on the Federal Register Web site at: http://www.archives.gov/federal-register/.



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