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CMCS Medicaid/CHIP/ACA Overview

Nov 15, 2025

Overview

Summary of CMCS program history and related initiatives for Medicaid, CHIP, and the Basic Health Program, including ACA impacts.

CMCS Role

  • CMCS leads national policy and operations for Medicaid, CHIP, and BHP.
  • Programs serve families, children, pregnant individuals, adults without children, seniors, and people with disabilities.

Medicaid

  • Authorized by Title XIX of the Social Security Act; enacted in 1965 with Medicare.
  • Available in all states, DC, and U.S. territories for low-income individuals.
  • Federal rules set parameters; states administer programs, creating coverage variations.

Children’s Health Insurance Program (CHIP)

  • Enacted in 1997; provides federal matching funds for children’s coverage.
  • Targets children in families above Medicaid income limits lacking private insurance.
  • Nearly all states cover children up to at least 200% of the Federal Poverty Level.

Basic Health Program (BHP)

  • Created by the Affordable Care Act (ACA) as a state option.
  • Offers affordable coverage for low-income residents near Medicaid/CHIP thresholds.
  • Supports continuity of care for individuals with fluctuating incomes.

Affordable Care Act (ACA) Overview

  • From 2014, states can expand Medicaid to under-65 with incomes below 133% FPL.
  • Standardizes eligibility and benefits across Medicaid, CHIP, and the Marketplace.
  • Establishes coordinated application using a single process across programs.

ACA Key Provisions Summary

ProvisionDescription
EligibilitySets a nationwide minimum Medicaid income eligibility to close coverage gaps.
FinancingFederal funds fully cover newly eligible adults for 3 years starting 2014; phases to 90% by 2020.
IT Systems and DataPolicies and financing equip states to invest in systems for the 1/1/2014 launch and eligibility expansion.
Coordination with ExchangesSingle application determines eligibility for all insurance affordability programs.
BenefitsNewly eligible receive benchmark or equivalent coverage including minimum essential benefits.
Community-Based LTSSImproves programs and funding for home and community long-term services and supports.
Quality and Delivery SystemsEnhances care quality and delivery while reducing costs.
PreventionPromotes prevention, wellness, and public health at all government levels.
CHIPExtends CHIP funding through FY 2015; maintains program authority through 2019.
Dual EligiblesCreates a CMS office to coordinate care for Medicare-Medicaid enrollees.
Provider PaymentsStates receive 100% federal match for payment increases.
Program TransparencyIncreases transparency; ensures public input on state and federal Medicaid waivers.
Program IntegrityStrengthens integrity: cross-program terminations, payment suspensions for suspected fraud, prevents improper payments.

Key Terms & Definitions

  • Federal Poverty Level (FPL): Income measure used to determine eligibility thresholds.
  • Benchmark Benefit Package: Standardized set of essential benefits for newly eligible Medicaid enrollees.
  • Dual Eligibles: Individuals eligible for both Medicaid and Medicare.
  • Long-Term Services and Supports (LTSS): Services aiding individuals with chronic conditions or disabilities in home or community.

Action Items / Next Steps

  • States consider Medicaid expansion to below 133% FPL for under-65 populations.
  • Implement and maintain eligibility and benefits coordination with Marketplaces.
  • Invest in and operate IT systems supporting streamlined eligibility and enrollment.
  • Advance community-based LTSS, quality improvements, and program integrity measures.