5000-1        HISTORY OF MEDICAID

Medicaid was established by Title XIX of the Social Security Act in 1965 to provide medical assistance to certain low-income needy individuals and families. Medicaid is basically intended to provide coverage for needy children, pregnant women, and aged, blind and disabled persons.

Alaska joined the Medicaid Program in 1972. New services and eligible groups have been added to the program since that time by the Legislature. Alaska's Medicaid program is administered by the Division of Medical Assistance in the Department of Health and Social Services.

Persons receiving Adult Public Assistance (APA ) and Supplemental Security Income (SSI Supplemental Security Income) are automatically eligible for Medicaid. There are eligibility categories for pregnant women and children based on having income below a percentage of the federal poverty level for Alaska. There are number of narrow eligibility categories that follow SSI Supplemental Security Income or APA eligibility policy, but are for the elderly or disabled who are not recipients of those cash programs. Alaska also purchases Part B Medicare for Medicaid-eligible recipients, and provides payment for long term care services for persons whose income is within 300% of the SSI Supplemental Security Income payment level.

Before July 1, 1997, individuals and families who were eligible for and/or received Aid to Families with Dependent Children (AFDC Aid to Families with Dependent Children) were automatically eligible for Medicaid. This entitlement was removed by the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. As a result of this major welfare reform legislation, families who are receiving cash assistance through the Alaska Temporary Assistance Program (ATAP ), generally referred to as “Temporary Assistance” (TA), are not automatically eligible for Medicaid. This legislation eliminated the AFDC Aid to Families with Dependent Children program, but required that Medicaid continue to be available to those who would have qualified for AFDC Aid to Families with Dependent Children. This category of Medicaid is now called Family Medicaid.

Beginning March 1, 1999, Medicaid based on federal poverty levels was expanded to cover more children and pregnant women. This new eligibility was combined with existing poverty level eligibility categories for children and pregnant women, is now collectively referred to as Denali KidCare. See PART B: Section 5300 for more information.