MEDICAID: HCFA Says States Illegally Deny Benefits
Many states are illegally denying families who leave welfare their Medicaid benefits, according to a federal audit of 40 states. Nine months ago, HCFA warned states that new welfare laws should not prevent eligible families from receiving Medicaid, but the audit revealed several problems:
- States do not tell individuals they are eligible for Medicaid when they are discouraged from applying for welfare;
- Some state computers automatically erase individuals from Medicaid enrollment when they leave welfare;
- Caseworkers hassle families applying for Medicaid.