Governor proposes reinstatement of Tefra program for disabled children's Medicaid access

In a recent meeting of the House Human Services Finance and Policy Committee, significant discussions centered around the reinstatement of the Tefra program, which allows families with children who have disabilities to access Medicaid services through a fee-based system. This program, previously repealed in the 2023 session, is designed for families whose incomes exceed the standard Medicaid eligibility but still require assistance for their children.

The proposed reinstatement targets families earning 675% of the federal poverty guidelines or higher. For context, this translates to an annual income of approximately $217,000 for a family of four and $143,000 for a family of two. Under the new proposal, families would pay fees based on their adjusted gross income, starting at 4.5% for those at the 675% threshold and increasing to 5.99% for incomes up to 975% of the federal poverty level. This upper tier includes families earning around $313,000 for a family of four or $206,000 for a family of two. Importantly, the fees are capped at the cost of services provided to the child, ensuring that families are not overburdened financially.

In addition to the Tefra program discussions, the committee also reviewed a revised budget proposal that includes increased funding for housing stabilization services. This funding aims to enhance the efficiency of processing eligibility for providers, which is crucial as the demand for housing assistance continues to grow.

The discussions in this meeting highlight the ongoing efforts by the Minnesota Legislature to address the needs of families with disabled children and to improve access to essential services. As the committee moves forward, the implications of these proposals could significantly impact the financial stability and well-being of many families across the state. The next steps will involve further deliberations on the budget and the potential implementation of these programs, which remain critical to supporting vulnerable populations in Minnesota.