11.1: State Flexibility
Give states more flexibility to provide health insurance to low-income individuals Other Information:
The Health Insurance Flexibility and Accountability (HIFA) Demonstration Initiative: — Encourages states to develop comprehensive
health insurance approaches that utilize available Medicaid and SCHIP funding to increase insurance coverage for low-income
individuals. — Simplifies the application process by providing clear guidance on the information states should include in
their demonstration proposals. — Gives states greater flexibility in designing benefit packages and cost sharing in exchange
for increasing health insurance coverage, particularly in support of private health insurance. — Establishes a firm requirement
of budget neutrality requirements and provides a simplified option for states wishing to minimize the federal/state negotiations.
— Increases accountability in the state and federal partnership by ensuring that Medicaid and SCHIP funds are effectively
being used to increase health insurance coverage. At the outset of each HIFA demonstration, the state will set a goal for
reducing the number of low-income uninsured and will be asked to systematically track the impact of their HIFA demonstration
on the uninsured. — Gives priority review to state proposals that meet the general guidelines of the HIFA demonstration project.
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