This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medical Assistance (MA) under the TEFRA Option

Medical Assistance (MA) under the TEFRA option is for children with a disability who are otherwise ineligible for MA because household income is above the MA for Families with Children and Adults (MA-FCA) income limit. The TEFRA option for children with a disability is named after the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 that created the option.

Under the MA TEFRA option, only the income of the child is counted when determining eligibility for MA. Parents’ income is not counted, instead, they pay a parental fee.

MA under the TEFRA option is available for children who meet all of the following:

  • Are under age 19
  • Live with at least one biological or adoptive parent
  • Require a level of care:
    • comparable to that provided in a hospital, nursing home or an intermediate care facility for people with developmental disabilities (ICF/DD), and
    • for which the cost for home care would not be more than MA would pay for the child’s care in a medical institution.
  • Are certified disabled

Children who are eligible for MA when counting parental income do not need to use the TEFRA option. Children approved under a home and community-based services waiver do not need to use the TEFRA option.

In general, MA under the TEFRA option follows the MA for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD) policies. Specific differences are indicated in the MA under the TEFRA option policies listed below.

MA under the TEFRA option eligibility is determined using a variety of non-financial, financial and post-eligibility requirements. This subchapter includes policies that apply to the MA under the TEFRA option and links to policies that apply to all MA programs, MA-ABD, and all Minnesota Health Care Programs (MHCP) programs.

TEFRA General Requirements

TEFRA Applications

MA Cooperation

MHCP Fraud

MHCP Inconsistent Information

TEFRA Parental Fees

MA Referral for Other Benefits

MHCP Rights

MA Third Party Liability

MA Cost Effective Insurance

MA Medical Support

MA Other Third Party Liability

TEFRA Non-Financial Eligibility

MA-ABD Non-Financial Eligibility

MA-ABD Bases of Eligibility

MA-ABD Certification of Disability

MA Citizenship and Immigration Status

MA County Residency

MHCP State Residency

MA Social Security Number

TEFRA Level of Care

TEFRA Financial Eligibility

TEFRA Post-Eligibility

MA Begin and End Dates

MHCP Overpayments

MA Third Party Liability

MA Cost-Effective Insurance

MA Medical Support

MA Other Third Party Liability

MHCP Change in Circumstances

MA Cooperation

MA Cost Sharing

MHCP Fraud

MA-ABD Health Care Delivery

MHCP Inconsistent Information

MA Qualifying Health Coverage

MA Referral for Other Benefits

MA-ABD Renewals

CREDIT: The content of this post has been copied or adopted from the Minnesota Healthcare Programs Eligibility Policy Manual, originally published by the Minnesota Department of Human Services.

This is also part of a series of posts on Minnesota Healthcare Eligibility Policies.