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TEFRA

Background

The Tax Equity and Fiscal Responsibility Act (TEFRA) is a Medicaid program that can help families with children younger than 19 years old who have a disability receive care in their homes rather than an institution. The TEFRA program can help pay for the cost of those services for eligible children. Some families will not have to pay anything as part of the program. Others pay a premium on a sliding scale, depending on their income. Children who live in an institution or receive extended care in an institution are not eligible for TEFRA.

You can apply for the program by filling out the TEFRA application packet and submitting it to your local DHS county office. If you need help or have questions, feel free to call: 1-855-372-1084.

Applying for TEFRA

How to Apply

Download forms at this link: How to Apply for TEFRA page
The child’s parent or guardian can apply for TEFRA at the DHS office in the child’s county of residence. Applications also are accepted at Arkansas Children’s Hospital.

More About TEFRA

More Info

Also known as the Katie Beckett option,  TEFRA  is a category of Medicaid that provides care to disabled children in their homes rather than in institutions. To qualify for  TEFRA  benefits, the child must be disabled according to the Supplemental Security Income (SSI) definition of disability and must meet the medical-necessity requirement for institutional care. Children who live in institutions or who receive extended care in institutions are not eligible in the  TEFRA  category. To qualify for  TEFRA  benefits, the child:

  • must be younger than 19
  • cannot have income that exceeds the Long Term Care Medicaid limit
  • cannot have countable resources that exceed $2,000
Parental income and resources are not considered. Only the income and resources of the child are counted. Appropriate medical services must be available to provide care for the child in the home. The estimated cost of care in the home cannot exceed the estimated cost of care for the child in an institution. Children who receive  SSI  but lose coverage intermittently due to fluctuating parental income may be eligible for  TEFRA  benefits in the months they do not receive  SSI .

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