TEFRA

Under Section 134 of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), states have the option to make Medicaid benefits available to children with physical or mental disabilities regardless of family income, and allows children requiring institutional level of services to be cared for in their homes. The estimated cost of caring for the child at home cannot exceed the estimated cost of caring for the child in the institution.
 
There were 1,057 children enrolled in TEFRA as of June 2024.  The program served a total of 1,265 children throughout all of FY 2024 and 2,205 children since its inception in 2005. The state spent $16.4 million on the TEFRA population in FY 2022 at an average annual cost of $15,715 per enrollee.