SCHIP Coverage for Pregnant Women and Unborn Children

SCHIP Coverage for Pregnant Women and
Unborn Children
Evelyne P. Baumrucker
Analyst in Health Care Financing
Domestic Social Policy Division
Summary
The State Children’s Health Insurance Program (SCHIP) does not include
pregnancy status among its eligibility criteria and does not cover individuals over age
18. Under SCHIP, states can cover pregnant women aged 19 and older in one of three
ways: (1) states may apply for waivers of program rules to extend coverage to adults
such as pregnant women (§1115 waiver authority); (2) states may provide health benefits
coverage, including prenatal care and delivery services, to unborn children through an
SCHIP state plan amendment (SPA) as permitted through regulation;1 or (3) states may
offer a “family coverage option” that allows them to provide coverage under a group
health plan that may include maternity care to adult females in eligible families.2 As of
October 2007, 17 states offered pregnancy-related services using SCHIP funds. Of those,
6 states used the §1115 waiver authority and 12 states extended coverage through
unborn child SPAs (Rhode Island extends coverage to pregnant women through both
authorities). This report summarizes the variation in pregnancy coverage and the
financing streams associated with such coverage among these states. This report will
be updated as state activity warrants.
Background
States that choose to cover pregnant women through the §1115 waiver authority must
submit a proposal to the Centers for Medicare and Medicaid Services (CMS) for approval.


1 Federal Register, vol. 67, no. 191, Wednesday, October 2, 2002, Rules and Regulations.
2 Section 2105(c)(3) of the Social Security Act allows states to cover entire families including
parents if the purchase of family coverage is cost-effective when compared with the cost of
covering only the targeted low-income children in the families involved, and would not substitute
for other health insurance coverage. E-mail correspondence (from June 7, 2007) with Kathleen
Farrell, the CMS Director of the SCHIP program, indicates that New Jersey and Massachusetts
are the only states with operational family coverage variance programs.

States with approved §1115 demonstration programs define the available pregnancy-
related services in their waiver terms and conditions agreements.
States that opt to extend SCHIP coverage to unborn children must submit an SPA
to CMS for approval specifying the pregnancy-related services. Under the SCHIP SPA
option, covered services must be related to the pregnancy or to conditions that could
complicate the pregnancy, including those for diagnosis or treatment of illnesses or
medical conditions that might threaten the health of the unborn child. Care after delivery
for the mother, such as postpartum services, is generally not covered as part of the title
XXI SPA option. Although CMS requires the care to be directed at the unborn child, the
SCHIP unborn child SPA option effectively enables states to provide prenatal care to
pregnant women including those with incomes at or above the Medicaid income eligibility
thresholds and for individuals who do not qualify for Medicaid (or SCHIP) for other
reasons, such as immigration status3 or incarceration.4 Finally, for the family coverage
option, pregnancy-related benefits are those offered by participating private health plans.
Summary of State Variation in Pregnancy Coverage Under SCHIP
Table 1 summarizes the variation in pregnancy coverage among states with §1115
waivers and those using the SCHIP unborn child SPA option. As of October 2007, 17
states offered pregnancy-related services using SCHIP funds. Of those, 12 states extended
coverage through unborn child SCHIP SPAs and 6 states used the §1115 waiver authority
(Rhode Island extends coverage to pregnant women through both authorities). The
highest upper-income eligibility thresholds for pregnant women and/or unborn children
under SCHIP was 300% FPL in California. Seven states established upper-income limits
at 200% FPL. Four states exceeded 200% FPL, and six states set maximum income levels
below 200% FPL.
Of the 12 states that offer pregnancy-related services to unborn children under the
SCHIP SPAs, all but Tennessee extended coverage to the unborn children of
undocumented aliens who otherwise would not have access to federally funded5
pregnancy-related services, except through emergency Medicaid. Two states used
SCHIP SPAs to extend coverage to the unborn children of incarcerated women who are
otherwise ineligible for SCHIP coverage.
Covered services under the §1115 waiver programs and the SCHIP SPAs generally
consisted of comprehensive pregnancy-related services including prenatal care, labor and
delivery services, and access to some form of coverage during the postpartum period.
However, the length of coverage (e.g., prenatal period through labor and delivery, or
prenatal period through 60 days postpartum period) and financing streams for the care


3 Section 1903(v) of the Social Security Act.
4 Section 2110(b)(2)(A) of the Social Security Act.
5 Illegal immigrants are barred from Medicaid and SCHIP eligibility; legal immigrants who have
not been granted lawful permanent residency status are ineligible for Medicaid or SCHIP for five
years. Such women who otherwise qualify but for their documentation status have access to
emergency care under Medicaid, which includes labor and delivery costs (Section 1903(v) of the
Social Security Act).

associated with each of these pregnancy phases varied across states. For example, some
states offered coverage from conception through 60 days postpartum care (financed with
SCHIP funds), whereas others segmented the coverage to include prenatal care (financed
with SCHIP funds), labor and delivery (financed with emergency Medicaid funds), and
postpartum care (financed with state-only funds). In these states, program specialists
pointed out that the pregnancy-related care is seamless to the mother despite the
administrative complexities required of the state to submit claims under multiple funding
streams. Three states indicated that the coverage offered to pregnant women and/or
unborn children was comprehensive and not limited to pregnancy-related services. An
additional four states specified that the available care included pregnancy-related care and
associated health services including, for example, medically necessary dental or mental
health benefits as long as the care was necessary to promote the health of the unborn
child.
Postpartum care differs among states that chose to extend pregnancy coverage under
the §1115 waiver authority as compared with those that offered coverage to unborn
children under the SCHIP unborn child SPAs. There were 15 states that offered 60 days
of postpartum care to at least some of their eligible populations, including each of the 6
states that offered pregnancy coverage under the §1115 waiver authority. Among the
SCHIP SPA states, five states financed 60 days of postpartum care with state-only funds.
Four SCHIP SPA states extended 60 days of postpartum care using SCHIP funds. CMS
permitted this financing arrangement despite the fact that the unborn child regulation
clearly states that federal SCHIP-financed care ends with the birth of the child. The
reason CMS permits this is because the state has a global rate for their pregnancy services
that includes the cost of prenatal care, labor and delivery, and 60 days of postpartum care.
One SCHIP SPA state provided SCHIP-financed postpartum care through the end of the
month that the child was delivered because those services have already been paid for
under the monthly managed care capitation payment. Two SCHIP SPA states did not
offer any form of care for the mother after the birth of the child except in the case of an
emergency during which the mother would have access to emergency Medicaid services.
Finally, two states (one §1115 waiver state and one SCHIP SPA state) provided access
to extended family planning services and supplies as a part of their postnatal care benefit.



CRS-4
Table1. SCHIP Pregnancy Coverage for States with Section 1115 Waivers and SCHIP Unborn Child State Plan
Amendments (as of October 2007)
Upper-
IncomeBenefit Coverage
StateThresholdLength ofFinancing
ward Date)Authority(% FPL)Mother’s Coverage After DeliveryFinancing StreamCovered ServicesCoverageStream
nsasUnborn200% FPLSeparate SCHIP program (SSP)Conception to birthSCHIPNo coverage except underEmergency
30/04)Child SPA undoc. aliensincludes prenatal care, and deliveryemergency MedicaidMedicaid
services
loradoSCHIP200% FPLPrenatal care, labor and delivery, andDate of applicationSCHIP60 days postpartum care SCHIP
27/02)§111560 days postpartum care (excludesthrough 60 days
HIFA dental care)postpartum
orniaUnborn0%-200%Prenatal care, labor and delivery, andConceptionSCHIP60 days postpartum care SCHIP (treated as a
iki/CRS-RS2278528/06)Child SPA undoc. aliens 60 days postpartum care through 60 daysbundled service)
g/w p o stp ar tum
s.or300%AIM program offers comprehensiveConceptionSCHIP
leakuninsured care not just pregnancy related care through 60 days
p o stp ar tum
://wikioisUnborn0%-200% SSP Medicaid look alike benefitsConfirmedSCHIP60 days postpartum careState-only funds
http11/03)Child SPA undoc. aliensincludes prenatal care and associatedpregnancy and
andhealth services (excludes HCBSthrough start of
incarceratedwaiver services and abortionlabor
womenservices)
Labor and delivery servicesLabor throughEmergency
d e liver y Medicaid
o SCHIPup to 185%Premium assistance for privateConfirmedSCHIP paysDefined in participating privateSCHIP pays for
21/05)§1115workers ininsurance (must cover postpartumpregnancy throughforcoverage planspremiums only
HIFA smallcare)60 days postpartumpremiums
businesses only
sianaUnborn0%-200%SSP to provide prenatal care, careConfirmedSCHIPNo coverage except emergencyMedicaid


/07)Child SPA undoc. aliensrelated to the pregnancy, andpregnancy throughservices under Medicaid
delivery services delivery

CRS-5
Upper-
IncomeBenefit Coverage
StateThresholdLength ofFinancing
ward Date)Authority(% FPL)Mother’s Coverage After DeliveryFinancing StreamCovered ServicesCoverageStream
ssachusettsUnborn200%SSP prenatal care, associated healthConceptionSCHIP60 days postpartum careState funded
15/03)Child SPA undoc. aliensservices, labor and deliverythrough birth program and free
care pool
igan Unborn185% FPLSSP includes prenatal care,ConceptionSCHIPLabor and delivery and 60 daysSCHIP (treated as a
17/03)Child SPA undoc. aliens pregnancy-related care, and non-through 60 dayspostpartum care bundled service)
pregnancy related care (up to birth ofpostpartumOther health coverage (e.g., brokenEmergency
child) labor and delivery, and 60arms)Medicaid
days postpartum care
nnesota Unborn275% SSP Medicaid look-a-like programConceptionSCHIP60 days postpartum careState-funded
/03)Child SPA undoc. alienscovers pregnancy-related services,through end of the
prenatal care, labor and delivery, andmonth in which the
iki/CRS-RS22785limited postpartum carechild was born
g/wada SCHIP133%-185%Medicaid pregnancy -related benefitsConceptionSCHIP 60 days postpartum careSCHIP
s.or2/06)§1115including prenatal care, relatedthrough 60 days
leakHIFA health care, labor and delivery, andpostpartum
60 days postpartum care
://wiki JerseyMedicaid0%-200% Presumptive eligibility programTemporaryMedicaidEmergency Medicaid for labor andEmergency
http18/01)and SCHIPincludes prenatal care, labor, andeligibility untildelivery services onlyMedicaid
§1115delivery determined eligible
HIFAfor Medicaid
0%-185% New Jersey Medicaid packageConceptionMedicaid60 days full comprehensiveMedicaid
includes prenatal care, labor andthrough 60 daysMedicaid
delivery, and 60 days of fullpostpartum
Medicaid coverage186%-200% ConceptionSCHIPSCHIP
through 60 days
p o stp ar tum
ode Island Unborn185%-250%Medicaid benefit package includesConceptionSCHIPExtended family planning familySCHIP
17/03)Child SPA undoc. aliens prenatal care, labor and deliverythrough labor andservices and supplies for 24 months
delivery60 days postpartum care State-only funds



CRS-6
Upper-
IncomeBenefit Coverage
StateThresholdLength ofFinancing
ward Date)Authority(% FPL)Mother’s Coverage After DeliveryFinancing StreamCovered ServicesCoverageStream
ode IslandSCHIP 185%-250%Medicaid benefit package (i.e.,ConceptionSCHIP60 days postpartum care andSCHIP
18/01)§1115 prenatal care, labor and delivery, andthrough 60 daysextended family planning family
60 days postpartum care)postpartumservices and supplies for 24 months
ginia SCHIP133%-185% Full Medicaid benefits (notConceptionSCHIPCoverage for the remainder of theSCHIP
21/05)§1115(approved uppregnancy only benefits) through labor andbirth month plus 60 days postpartum
HIFA to 200%)deliverycoverage.
sseeUnborn185%-250%SSP Pregnancy-related servicesConceptionSCHIPCoverage through the last day of theSCHIP (treated as a
3/07)Child Stateincluding prenatal care, labor andthrough 60 daysmonth that 60 day post partumbundled service)
Plan Option delivery, and 60 days postpartumpost partumperiod occurs
care
iki/CRS-RS22785as/06)UnbornChild SPA 200%undoc. aliensSSP to provide prenatal care, labor and delivery, and 2 postpartum visits Care ends at the end of the monthduring which the child is born. SCHIP
g/wThere are no public benefits after
s.orthat except if the mother qualifies for
leakemergency Medicaid services.
://wikishington22/03)UnbornChild SPA 185%undoc. aliensSSP, Benefits includes prenatal careand associated health servicesConception andthrough start ofSCHIP60 days postpartum care state-only funds
httplabor and delivery
Labor and delivery Labor and deliveryEmergency
Medicaid
sconsin Unborn185% SSP Badger Care prenatal programConceptionSCHIP 60 days postpartum care allowed forSCHIP (treated as a
/07)Child SPA undoc.provides for prenatal coveragethrough 60 daysall but undocumented aliensbundled service)
aliens, andincluding cost of labor and deliverypostpartum
uninsuredand 60 days postpartum careUndocumented aliens emergencyEmergency
and/orMedicaid only Medicaid
incarcerated
wo me n
: Section 1115 waiver terms and conditions documents, SCHIP unborn child state plan amendments, and conversations with state officials.
SPA means State Plan Amendment, HIFA means Section 1115 Health Insurance Flexibility and Accountability Waiver, AIM stands for Access for Infants and Mothers program,
stands for Medicaid Section 1915(c) Home and Community-Based Waiver, SSP means SCHIP Separate State Program, and a Medicaid look-a-like program is a Separate SCHIP
ram with a benefit package that looks like Medicaid, but may exclude, for example, certain services.