Bill would cancel federal MOE requirements

The federal MOE or maintenance of effort requirements prevent a state from reducing eligibility for Medicaid and the Children's Health Insurance Program until 2014 when the federal health reform law's coverage expansion goes into effect. States that have already expanded  coverage to persons living at or under 133 percent of the federal poverty level may seek a waiver from the MOE requirements if they can demonstrate hardship. Another bill, called the State Flexibility Act, has been introduced in Congress. It would repeal the MOE provisions and allow states to reduce eligibility for those programs. According to the Congressional Budget Office, repeal of the MOE requirements could save $2.8 billion over the first five years while increasing the number of uninsured by up to 300,000 people, many of them children.


05-25-2011 06:30 (EDT)