The Department of Health and Human Services has approved a plan by Arizona to halt new enrollment to and eliminate its medical-expense deduction program, a small part of the state's Medicaid program, the Arizona Health Care Cost Containment System, according to an Arizona Republic report.
The program helps state residents who earn too much to qualify for Medicaid but have costly medical bills that when subtracted from income places them below 40 percent of the federal poverty level, according to the report.
CMS approved the cut saying the state had no legal obligation to keep it going.
The program, which assists nearly 6,000 people, is scheduled to end on Oct. 1. Its elimination is estimated to save the state $70 million next year.
Arizona Gov. Jan Brewer has also proposed freezing Medicaid enrollment for childless adults, but that proposal is still awaiting federal approval. Years ago, under a federal waiver, Arizona expanded its Medicaid program beyond federal requirements to include childless adults, who are not usually covered by Medicaid in other states.
Read the Arizona Republic report on the Arizona Health Care Cost Containment System.
Read related articles on the AHCCCS:
Arizona to Cut Medicare Rolls, Reduce Payments by 5%
Proposed Arizona Budget Scales Back Medicaid Cuts, But Doesn't Include Hospital Tax
The program helps state residents who earn too much to qualify for Medicaid but have costly medical bills that when subtracted from income places them below 40 percent of the federal poverty level, according to the report.
CMS approved the cut saying the state had no legal obligation to keep it going.
The program, which assists nearly 6,000 people, is scheduled to end on Oct. 1. Its elimination is estimated to save the state $70 million next year.
Arizona Gov. Jan Brewer has also proposed freezing Medicaid enrollment for childless adults, but that proposal is still awaiting federal approval. Years ago, under a federal waiver, Arizona expanded its Medicaid program beyond federal requirements to include childless adults, who are not usually covered by Medicaid in other states.
Read the Arizona Republic report on the Arizona Health Care Cost Containment System.
Read related articles on the AHCCCS:
Arizona to Cut Medicare Rolls, Reduce Payments by 5%
Proposed Arizona Budget Scales Back Medicaid Cuts, But Doesn't Include Hospital Tax