Thomas Daschle: “today I introduce the Medicaid Eligibility Restoration Act of 1999, which fixes a major problem recently created in the…”

“today I introduce the Medicaid Eligibility Restoration Act of 1999, which fixes a major problem recently created in the health care safety net. My bill addresses a Medicaid eligibility problem--lack of access to health insurance during the first, and often costliest, month of disability--that was inadvertently caused by a change to Supplemental Security Income (SSI) policy in the 1996 welfare reform law. Let me explain how this Medicaid ``gap month'' problem was created. In 1996, the effective date of application for Supplemental Security Income (SSI) was changed to the month following the date when an individual applies for SSI. Before the 1996 change, pro-rated payments began immediately. Since 1996, payments do not begin until the month following original application. This SSI payment change generated a small cost savings for the SSI program and ended the administrative burden of calculating partial month payments, but it also created a problem--a gap month--for Medicaid eligibility that is linked to SSI. For most SSI and Medicaid recipients, this change has resulted in one lost month of Medicaid eligibility, which is a hardship in itself. But those who suddenly become disabled or who are born with a disability face more dire consequences. Because of the 1996 change, they now lose health insurance coverage for what is often their costliest month--their first month of disability.”