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Title XXI Cost-Sharing Regulations for Medicaid Expansion Programs

In a February 1998 letter to State officials, (this letter and other HCFA (now CMS) guidance can be found at http://www.cms.hhs.gov/home/schip.asp globe), the Health Care Financing Administration (HCFA), now the Centers for Medicare and Medicaid Services (CMS), set out basic rules regarding cost-sharing in SCHIP.

For States implementing Medicaid expansion programs, the following rules apply:

  • Enrollment fees, premiums, or similar charges on children are permitted under certain circumstances.
  • Deductibles, coinsurance, copayments, or similar charges are prohibited.
  • State cost-sharing obligations imposed by Medicaid must be followed.
  • Cost-sharing must be "nominal."
  • Services may not be denied even if a cost-sharing charge cannot be paid.

Related Questions:

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Where else is HCFA (now CMS) Guidance discussed?

Who presented this material?

  • Judith Arnold, Leighton Ku, Ph.D., M.P.H., and Rose M. Naff addressed the issue of cost-sharing at SCHIP seminar held in Sanibel Island, Florida, June 29-July 1, 1998.  At the SCHIP seminar held later in Portland, Oregon, September 14-16, 1998, Rose Naff again addressed this issue.

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