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KidsCare Manual

Chapter 100: Program Overview


Table of Contents

100 Program Overview

101 AHCCCS Background Information

102 AHCCCS Administration

103 AHCCCS Program

104 KidsCare Background Information

105 KidsCare Services

106 Individual Rights

 


100 Program Overview

This chapter provides background information on AHCCCS, the divisions within AHCCCS, the different AHCCCS programs, and the KidsCare program.

101 AHCCCS Background Information

The Arizona Health Care Cost Containment System (AHCCCS) was established November 1981 and is funded by State and Federal funds. AHCCCS provides coverage under Title XIX and Title XXI of the Social Security Act (Medicaid and KidsCare). AHCCCS also covers indigent persons who can not qualify for Medicaid or KidsCare under of the state's health care program.

Unlike traditional Medicaid, which pays for services on a fee-for-service basis, AHCCCS pays a monthly capitation amount to health plans or program contractors which provide managed health to the enrolled members.

102 AHCCCS Administration

The AHCCCS Administration supervises the planning, implementation, and continued operation of AHCCCS.

102.1 Division of Member Services

DMS assists eligible individuals in obtaining health care through eligibility and enrollment processes. DMS is divided into two bureaus (see Appendix A for the DMS organization chart).

A. Bureau of Eligibility

1. Field Operations consists of 16 ALTCS offices, the KidsCare Office, the SSI MAO Unit, the QA Unit, and the Medical Eligibility QC Unit. They determine eligibility for ALTCS, Medicare Cost Sharing, KidsCare, and SSI MAO programs. The Medical Eligibility QC Unit conducts quality control reviews of medical eligibility for long term care services.

2. Program Support consists of the Office of Eligibility Training, the Office of Automation, the Office of Eligibility Policy, and the Office of Legal Support.

a. The Office of Eligibility Training provides clerical and financial and medical eligibility training to Field Operations staff.
b. The Office of Automation provides assistance with KEDS, LEDS, and CATS system problems. They complete system testing and develop and maintain system manuals.

c. The Office of Eligibility Policy develops policy for ALTCS, Medicare Cost Sharing, SSI MAO, KidsCare, and the State Funded (County) AHCCCS programs. They provide technical assistance, clarify policy issues, and respond to questions for Field Operations staff, the 15 Counties, other AHCCCS Divisions, and the public. See 102.3 for policy clarification request procedures.

d. The Office of Legal Support coordinates the appeals process, reviews trust documents, and provides legal support to Field Operations staff. See Chapter 1500 for more information about support provided during the hearing process.

B. Bureau of Member Services

1. Member File Integrity Services (MFIS) maintains the AHCCCS member database (PMMIS). To request changes to a member's file in PMMIS that can not be made in KEDS, telephone the Technical Service Center (see forms instructions for KC-620).

2. The Communications Center enrolls members in health plans and verifies member eligibility status for providers. The Communications Center also oversees annual open enrollment changes.

3. The Member Services Unit researches and corrects member eligibility status and enrollment problems.

4. Technical Operations Production Support (TOPS) monitors the system on a daily basis. TOPS reviews reports from the subsystem and health plans and monitors APIS, SDX, and KidsCare system interfaces with PMMIS.

102.2 Other Divisions

A. The Division of Business and Finance (DBF) develops and monitors the agency budget and manages agency funds. DBF processes payroll, monitors third party liability contracts and estate recovery, pays contractors, processes claims, and oversees purchasing and facility management. DBF also issues and reviews responses to Requests for Proposals (RFPs) from potential service providers and contractors for services.

B. The Information Services Division (ISD) develops and maintains all automation services necessary to support the functions of the agency. ISD supports the telephone, mainframe, and PC networks.

C. The Office of Legal Assistance (OLA) conducts eligibility appeals and evidentiary hearings. OLA investigates member, provider and contractor grievances and makes recommendations to the Director. OLA also reviews, approves, and oversees grievance procedures adopted by Health Plans, Program Contractors, and other agencies.

D. The Office of Managed Care (OMC) conducts financial eligibility quality control reviews, develops and monitors the behavioral health program, monitors contract performance of health plans and program contractors, and develops rates for capitated plans and nursing homes. The Member Fraud Investigations Unit within OMC investigates allegations of fraud or abuse by a KidsCare recipient.

E. The Office of the Medical Director (OMD) develops medical policy for acute and long term care programs. OMD oversees utilization and quality management, case management services reviews, FFS network development, and the Emergency Services Program.

F. The Office of the Director (OOD) provides policy direction to the agency and monitors the entire AHCCCS program. OOD also investigates provider fraud and abuse. The Human Resources Administration is part of the OOD.

G. The Office of Policy Analysis and Coordination (OPAC) functions as liaison with the Health Care Financing Administration (HCFA), maintains the state plan, and coordinates federal reviews and waiver submissions. OPAC also coordinates the agency's administrative rules and intergovernmental agreements and develops and analyzes Federal and State legislation.

102.3 Policy Clarification Requests

If the manual is unclear or a specific question is not addressed and the supervisor and manager are unable to answer the question, submit a Policy Clarification Request (KC-104) to the Office of Eligibility Policy. This includes questions related to the Medicaid categories screened prior to KidsCare eligibility.

A. Follow the forms instructions for completing and submitting the Policy Clarification Request form.

B. Cite the relevant manual sections and submit copies of all relevant documents.

C. Policy clarifications that are case specific may not be used for other cases. Submit a PCR for each case to the Office of Eligibility Policy according to the procedures on the PCR form.

103 AHCCCS Programs

AHCCCS programs consist of Medicaid and the state's health care programs. Several agencies are responsible for determining eligibility for AHCCCS programs.

103.1 Eligibility Determined by the AHCCCS Administration

The AHCCCS Administration determines eligibility for the Arizona Long Term Care System, Medicare Cost Sharing programs, SSI MAO, SSI MAO linked Federal Emergency Services,  and KidsCare.

A. Arizona Long Term Care System (ALTCS)

AHCCCS was expanded by the Arizona State Legislature in 1987 to include the ALTCS program. ALTCS was effective December, 1988 to serve the developmentally disabled and January, 1989 for the elderly and physically disabled.

Medically necessary services include acute care, home and community based services, institutional care, hospice, behavioral health services, and transitional care. Eligibility requirements include, but are not limited to, Arizona residency, U.S. citizenship or qualified alien status, Social Security Number, income at or below 300% of the Federal Benefit Rate (FBR), resources at or below $2,000, and medical criteria of at risk of being institutionalized. Approved individuals are enrolled with a program contractor which is responsible for providing services. Applicants apply at the ALTCS Local Offices. Re-determinations of eligibility are completed annually.

B. Medicare Cost Sharing Programs

This group includes Qualified Medicare Beneficiary (QMB), Specified Low Income Medicare Beneficiaries (SLMB), Qualified Individual-1 (QI-1), Qualified Individual-2 (QI-2), and Qualified Disabled Working Individuals (QDWI). Eligibility requirements include, but are not limited to, Arizona residency, U.S. citizenship or qualified alien status, Social Security Number, income at or below percentages of the Federal Poverty Level (FPL) varying from 100% to 175%.

To be eligible for the QDWI program, individual resources must be at or below $4,000, and couple resources must be at or below $6000. The QMB, SLMB, QI-1, and QI-2 programs do not have resource requirements.

The QI-1 and QI-2 programs are funded annually by block grants from the federal government. Recipients of the QI-1 or QI-2 program must reapply each year for continued benefits. When the block grant funds are depleted, eligibility cannot be approved for any more applicants. 

Applicants apply at any of the ALTCS offices. Redeterminations of eligibility for the QMB, SLMB, and QDWI programs are completed annually. Reapplications of the QI-1 and QI-2 programs are processed by the SSI MAO Unit.

1. The QMB program became effective July, 1989 with the passage of the Medicare Catastrophic Coverage Act of 1988. QMB covers aged, blind, or disabled individuals who are entitled to Medicare Part A and have income at or below 100% of the FPL. QMB benefits are payment of the Part A and Part B premiums, deductibles and coinsurance.

2. The SLMB program became effective January, 1993 with the passage of the Omnibus Budget Reconciliation Act. SLMB covers aged, blind or disabled individuals who receive Medicare Part A, receive or are entitled to Medicare Part B, and have income greater than 100% but less than or equal to 120% of the FPL. The only SLMB benefit is payment of the Medicare Part B premium.

3. The QI-1 program became effective July, 1998 with the Balanced Budget Act of 1997. QI-1 covers aged, blind, or disabled individuals who receive Medicare Part A and have income greater than 120% but less than or equal to 135% of the FPL. The only QI-1 benefit is payment of the Medicare Part B premium.

4. The QI-2 program became effective July, 1998 with the Balanced Budget Act of 1997. QI-2 covers aged, blind, or disabled individuals who receive Medicare Parts A and B and have income greater than 135% but less than or equal to 175% of the FPL. The only QI-2 benefit is a single annual payment for partial reimbursement of the Medicare Part B premium.

5. The QDWI program became effective July, 1990 with the passage of the Omnibus Budget Reconciliation Act of 1989. QDWI covers individuals who have lost Title II disability benefits due to earnings, continue to be disabled, are under the age of 65 and are entitled to enroll in Medicare Part A. The only QDWI benefit is payment of the Medicare Part A premium.

C. AHCCCS Medical Benefits (SSI MAO) Programs

The AHCCCS SSI MAO Unit determines eligibility for AHCCCS Medical Benefits. This group includes Disabled Child (DC), Disabled Adult Child (DAC), Disabled Widow/Widower (DWW), Pickle, SSI Non-Cash, and SSI Prior Quarter. Eligibility requirements include, but are not limited to, Arizona residency, U.S. citizenship or qualified alien status, Social Security Number, income at or below 100% of the FBR, and resources at or below $2,000. SSI Non-Cash does not have resource requirements. Eligible individuals are enrolled with an AHCCCS Health Plan.

AHCCCS is required to determine eligibility for ongoing medical benefits when a member loses SSI cash. This is known as the ExParte process. When a member loses SSI, continuation of AHCCCS medical assistance is automatically provided while the SSI MAO Unit determines if the member is eligible for AHCCCS Medical Benefits or the QMB program, or refers the case to DES for a determination of eligibility.

1. DC covers children who became ineligible for SSI Cash due to the change in the definition of childhood disability in Federal Law (The Personal Responsibility and Work Opportunity Reconciliation Act of 1996). These children continue to be eligible for medical assistance, until age 18, if they meet the prior definition of disability in effect August 21, 1996 and the eligibility criteria for SSI Non-cash.

2. DAC covers individuals who are age 18 and older and receive Title II benefits as disabled adult children on the basis of blindness or disability that began before the individual turned 22. These individuals would otherwise be eligible for SSI Cash except for entitlement to (or an increase in) Title II benefits. Income eligibility is determined by subtracting the Title II benefit from the individual's total income and comparing to 100% of the FBR. An applicant for DAC benefits is also evaluated for the QMB program.

3. DWW covers former SSI Cash recipients who are disabled widows/widowers (or disabled unremarried divorced spouse) who are at least 50 years old, but are not yet 65. These individuals would still be eligible for SSI Cash except for entitlement to (or an increase in) Title II benefits. Eligibility for the program ends once Medicare Part A coverage begins. Income eligibility is determined by subtracting the Title II benefit from the individual's total income and comparing to the income limit.

4. Pickle (named after the bill's sponsor) covers individuals who receive Title II benefits and who previously received SSI and Title II benefits concurrently after April 1977. These individuals have lost their SSI coverage for any reason. Income eligibility is determined by combining the amount of Title II income received in the year in which SSI was terminated and any other income received and comparing to the income limit. An applicant for Pickle benefits is also evaluated for the QMB program.

5. SSI Non-Cash covers aged, blind, or disabled individuals who meet most SSI requirements but do not receive SSI cash benefits. This includes individuals who are eligible for SSI of less than $1.00 and, therefore, ineligible to receive a cash payment, and individuals who receive in-kind income that makes them income ineligible. SSI Non-Cash uses two different income tests with different income deductions and income limits.

6. SSI Cash Prior Quarter covers SSI Cash individuals who received a covered medical service during the three months prior to the month of application for SSI Cash. Applicants must have met the eligibility criteria for SSI Non-Cash during these months. AHCCCS is notified by the Social Security Administration of potentially eligible individuals.

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103.2 Eligibility Determined by the Social Security Administration (SSA)

SSA determines eligibility for Supplemental Security Income (SSI Cash). Individuals receiving SSI Cash are automatically eligible for AHCCCS medical assistance. SSI Cash is available for eligible aged, blind, or disabled individuals. Eligibility requirements include Arizona residency, U.S. citizenship or qualified alien status, Social Security Number, income at or below 100% of FBR, and resources at or below $2,000. Applicants apply at the Social Security Administration.

103.3 Eligibility Determined by the Arizona Department of Economic Security (DES)

The DES Family Assistance Administration (FAA) determines eligibility for Food Stamps, Temporary Assistance to Needy Families (TANF) and Medical Assistance Programs. The Medicaid Medical Assistance categories include AHCCCS for Families with Children (AFC), S.O.B.R.A., Deemed Newborn, Young Adult Transitional Insurance (YATI), AHCCCS Care, and MED. Eligibility requirements include Arizona residency, U.S. citizenship or qualified alien status, Social Security Number, and income and resources at or below the limit for the applicable category. Applicants apply at the Department of Economic Security. Approved individuals are enrolled with an AHCCCS Health Plan.

A. Family Medicaid Coverage

AHCCCS for Families with Children (AFC) covers families that include deprived dependent children. Eligibility is determined based on criteria that were in effect for the Aid to Families with Dependent Children (AFDC) program before August 1996. At that time, the Personal Responsibility and Work Opportunities Reconciliation Act (PRWORA) replaced the AFDC Cash program with the Temporary Assistance for Needy Families program (TANF) and de-linked the cash and medical assistance programs, requiring a separate eligibility determination for each program. Beginning 7/1/01, the AFC income standard is 100% of the FPL. Resources are not considered in the eligibility determination. The combined income and resources of all family members are used to determine AFC eligibility for the family as a unit. DES refers to this category as "1931" after the section of the Social Security Act that authorizes it.

B. Individual Medicaid Coverage

When a family cannot meet the requirements for AFC because of excess income, DES determines eligibility for each family member individually.

The income limit for individual coverage is based on the applicant's age and, if the applicant is pregnant, the number of expected babies. Some or all of the applicant's income and a portion of the income from the responsible relatives are totaled and compared to a percentage of the appropriate limit. The percentage is determined by the number of people whose income is considered and whether the applicant is pregnant. See 707 for procedures to determine income eligibility for Medicaid.

1. S.O.B.R.A. (named for the Sixth Omnibus Reconciliation Act which created the program). In addition to receiving applications directly from the public, DES receives applications from KidsCare which require applicants who are potentially eligible for S.O.B.R.A. to be determined ineligible for S.O.B.R.A. before being approved for KidsCare.

There are two categories of coverage under S.O.B.R.A.

a. The S.O.B.R.A. Pregnant category covers pregnant persons beginning with any month of pregnancy throughout the 60 day postpartum period. Income eligibility is based on 140% of the FPL. Resources are not considered in the eligibility determination. The case is closed at the end of the postpartum period and eligibility under another category is explored. In addition to DES, applicants apply at Baby Arizona providers.

b. The S.O.B.R.A. Child category covers children under age 19. Income eligibility is based on 140% of the FPL for children under age 1, 133% of the FPL for children age 1-5 and 100% of the FPL for children age 6 or older . Resources are not considered in the eligibility determination. DES reviews eligibility every 12 months.

C. AHCCCS Care covers individuals who do not qualify for other Medicaid programs because they are not linked to any categories (aged, blind, disabled, child, parent, etc.). Eligibility requirements include, but are not limited to, Arizona residency and U.S. citizenship or qualified alien status. Eligibility can be determined for household groups or individuals following methodologies of either the AFC or individual Medicaid coverage. Eligible households must have income at or below 100% of the FPL. Resources are not considered in the eligibility determination.

D. The Medical Expense Deduction (MED) program covers individuals who do not qualify for other Medicaid programs because of excess income. Eligibility requirements include, but are not limited to, Arizona residency and U.S. citizenship or qualified alien status. Eligibility is determined for household groups. Eligible households must have quarterly income at or below 40% of the FPL for three months after deducting medical bills incurred during the month before, month of, and/or month after application and not paid by or the responsibility of someone else. The household liquid resources must be no more than $5,000 and the total resources no more than $100,000.

E. Newborn Medicaid Coverage

The Deemed Newborn category provides up to one year of medical coverage to children born to mothers receiving Title XIX medical benefits. Coverage is provided when the baby remains in Arizona with the mother. Income and resources are not considered in the eligibility determination, as eligibility is based on the mother's eligibility when the child is born.

F. The Young Adult Transitional Insurance (YATI) category covers 18, 19, and 20 year olds who are in foster care under the jurisdiction of the Division of Children, Youth, and Family (DCYF) on their 18th birthday. Income and resources are not considered in the eligibility determination.

103.4 Federal Emergency Services

The FES program is available to individuals who, except for failure to meet citizenship/alien status requirements described in Chapter 500, would otherwise meet Title XIX eligibility requirements. Individuals are not enrolled with an AHCCCS Health Plan. They receive only emergency services on a fee-for-service basis. The SSI MAO Unit determines FES eligibility for individuals who would otherwise be eligible for SSI MAO linked programs. DES determines FES eligibility for individuals who would otherwise be eligible for one of the programs listed in 103.3, except AHCCCS Care and MED.

104 KidsCare Background Information

The Arizona State Legislature passed legislation in May 1998 implementing the Title XXI Arizona Children's Health Insurance Program (KidsCare). The KidsCare program was approved by the Health Care Financing Administration (HCFA) in September 1998 and became effective November 1, 1998.

The program was designed to decrease the number of children in Arizona who are uninsured. Applications are processed by the AHCCCS Administration and are screened for Medicaid eligibility in addition to KidsCare eligibility.

The program is for children under the age of 19 with household income under the appropriate limit. Resources are not considered in the eligibility determination.

105 KidsCare Services

Eligible children have a choice of an AHCCCS Health Plan in their Geographic Service Area (GSA). Native Americans also may choose to receive services through the Indian Health Service (IHS). The child must choose a Health Plan or IHS before you can approve KidsCare. After approval, children are enrolled with a provider (See 1001.1).

105.1 KidsCare Services Provided Through Health Plans or IHS

A. Acute Care

1. Doctor's office visits

2. Specialist care, if necessary

3. Hospital services

4. Pregnancy care

5. Prescriptions and medical supplies

6. Laboratory and X-ray services

7. 24-hour emergency medical care

8. Family planning services

9. Complete physical exams

10. Immunizations

11. Dental screening and treatment

12. Eye exam and glasses

13. Hearing tests and hearing aids

14. Emergency medical transportation

15. Non-emergency transportation.

B. Behavioral Health

Behavioral health services are described as:

1. Inpatient/outpatient mental health services;

2. Inpatient/outpatient substance abuse treatment services; and

3. Residential substance abuse treatment services.

C. Other Services

1. Nursing Care Services (for a maximum of 90 days when the medical condition of the person indicates that nursing facility services are necessary to prevent hospitalization)

2. Physical therapy, occupational therapy, and services for individuals with speech, hearing, and language disorders

3. Hospice Care

4. Home Health Services

105.2 Premiums

A household with children enrolled in KidsCare may be charged a monthly premium. The premium amount depends on the Income Group's total income and the number of children enrolled in KidsCare. For more information about premiums, see Chapter 1100.

105.3 Family Coverage for Parents of KidsCare Eligible Children

Health plans offer health insurance coverage to the parent or legal guardian of a KidsCare eligible child who is enrolled with an AHCCCS Health Plan. Family members are notified of this option on the approval notice. The health plan sets the rates for premiums. A parent or guardian who selects this coverage pays the entire premium. The health plan is responsible for enrolling the members and collecting premiums.

106 Individual Rights

Individuals requesting KidsCare or any other AHCCCS Medical program have the right to:

A. Apply for KidsCare;

B. An equitable determination of eligibility;

C. Not be discriminated against on the basis of race, national origin, religion, or by reason of handicap;

D. Have information regarding the application for KidsCare treated in a confidential manner; and

E. Request a hearing because the KidsCare application was denied, discontinued, or not processed in a reasonable time period.

 

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