Page 1 GAO-13-177R Medicaid for Certain Populations

United States Government Accountability Office

Washington, DC 20548

December 12, 2012

The Honorable Orrin G. Hatch

Ranking Member

Committee on Finance

United States Senate

The Honorable Joseph R. Pitts

Chairman

Subcommittee on Health

Committee on Energy and Commerce

House of Representatives

Subject: Medicaid: Enrollment and Expenditures for Qualified Individual and 

Transitional Medical Assistance Programs

Qualified Individual (QI) and Transitional Medical Assistance (TMA) are particular 

programs within Medicaid that are targeted to specific groups of low-income 

individuals.1 The QI program provides assistance to certain low-income Medicare 

beneficiaries by paying for their Medicare Part B premiums and is due to expire on 

December 31, 2012.2

 

1

Medicaid, a joint federal-state program that finances health insurance coverage for certain 

categories of low-income individuals, spent about $389 billion on coverage for eligible enrollees in 

fiscal year 2010. States administer Medicaid within broad federal guidelines that specify categories of 

low-income individuals that states must cover and categories that are optional. For example, in 1996, 

section 1931 of the Social Security Act (SSA) established a new mandatory Medicaid eligibility group 

of low-income families with children that are eligible to receive TMA coverage. See Pub. L. 

No. 104-193, § 114,110 Stat. 2105, 2177 (adding section 1931 to the SSA) (codified 

at 42 U.S.C. § 1396u-1).

The TMA program offers up to 1 year of additional Medicaid 

health insurance benefits for certain low-income families who would otherwise lose 

coverage. Under permanent provisions of the Social Security Act (SSA), Medicaid 

coverage continues for 4 months for families who would otherwise lose coverage 

due to an increase in earned income or hours of employment or increased child or 

2

Medicare is a federal health insurance program for individuals age 65 and over, individuals under the 

age of 65 with certain disabilities, and individuals with end-stage renal disease. Medicare has four 

parts, which cover different aspects of care for the population. In general, Medicare Part A covers 

hospital and inpatient care, Part B covers certain outpatient care, medical supplies, and preventive 

services, Part C is a managed care coverage option known as the Medicare Advantage program, and 

Part D provides an optional outpatient prescription drug benefit. The QI program was established by 

the Balanced Budget Act of 1997. See Pub. L. No. 105-33, § 4732, 111 Stat. 251, 520 (adding new 

sections 1902(a)(10)(E)(iv) and 1933 to the SSA) (codified at 42 U.S.C. §§ 1396a(a)(10)(E)(iv),

1396u-3).
Page 2 GAO-13-177R Medicaid for Certain Populations

spousal support.3 In addition, under a provision expiring on December 31, 2012, 

families who would otherwise lose Medicaid eligibility because of earned income or 

hours of employment, or the loss of a time-limited earnings disregard, receive at 

least 6, and up to 12, months of Medicaid coverage.4

To obtain this information, we reviewed relevant legislation and policy guidance 

issued by the Department of Health and Human Services (HHS), and interviewed 

officials from the Centers for Medicare & Medicaid Services (CMS)—the agency 

within HHS that administers the Medicaid program. For information on the QI 

program, we also examined data from CMS’s Medicaid Statistical Information 

System (MSIS),

In light of the approaching 

expiration of the QI program and certain TMA provisions, you asked us to provide 

more information on the programs’ enrollment and expenditures to inform 

consideration of reauthorization. This report provides information about enrollment 

and expenditures in both the QI and TMA programs at the national and state levels.

5 the CMS-64 data set,6 and data published by CMS on the number 

of individuals potentially eligible for QI. For enrollment, we analyzed data from fiscal 

years 2006 through 2009, the most recent year of complete data available in MSIS. 

For expenditures, we analyzed CMS-64 data from fiscal years 2006 through 2011, 

the most recent year of data available. For the number of potential QI eligibles, we 

used CMS’s annual estimates based on Census data for fiscal years 2006 through 

2011.7

For the TMA programs, we sent an electronic survey to the Medicaid Director or his 

or her designated staff in all 50 states and the District of Columbia to obtain key 

information about TMA program design, enrollment, and expenditures beginning in 

2006 through the most recent year available.

According to CMS, the annual estimates of potential QI eligibles are 

overstated because they do not take into account certain eligibility requirements for 

QI, such as resource limits. In order to assess the reliability of the data we analyzed, 

we reviewed relevant guidance and documentation, including CMS forms and data 

dictionaries, and interviewed CMS officials familiar with Medicaid data. We also 

reviewed the data for reasonableness and consistency, including screening for 

missing data, outliers, and obvious errors. We determined that these data were 

sufficiently reliable for our purposes.

8

 

3

See SSA §§ 1902(e)(1)(A), 1931(c), 406(h) (as in effect on July 16, 1996), codified at 42 U.S.C. 

§§ 1396a(e)(1)(A), 1396u-1(c).

Where necessary, we followed up with 

4

SSA §1925, codified at 42 U.S.C. § 1396r-6. Section 1925 preempts section 1902(e)(1)(A) through 

December 31, 2012, for families with earned income. SSA § 1902(e)(1)(B), codified at 42 U.S.C. 

§ 1396a(e)(1)(B).

We have previously reported that TMA is a key protection offered to families at a critical juncture in 

their efforts to move from welfare to work. See GAO, Medicaid: Transitional Coverage Can Help 

Families Move from Welfare to Work, GAO-02-679T (Washington, D.C.: Apr. 23, 2002).

5

MSIS is a CMS system that collects eligibility and claims data from states. CMS uses this system to 

produce eligibility and program characteristics. 

6

The CMS-64 data set aggregates each state’s expenditures and is used to determine reimbursement 

to each state for its federal share of Medicaid expenditures.

7

CMS’s eligibility numbers are drawn from the Census Bureau Annual Social and Economic 

Supplement and comprise the number of Medicare beneficiaries who are not enrolled in Medicaid 

whose incomes are within the income limits established for QI.

8

In this report, we use the term “states” to refer to the 50 states and the District of Columbia.
Page 3 GAO-13-177R Medicaid for Certain Populations

states by email and telephone and ultimately received responses from 45 states. 

Some states were not able to provide the information we requested, or were not able 

to provide the information within the timeframes of our work.9

In summary, the QI program enrolled about 426,000 individuals nationwide in 

2009—the most recent year for which comprehensive enrollment data were 

available—with expenditures of about $431 million. While QI enrollment increased 

30 percent from fiscal year 2006 to fiscal year 2009, program expenditures 

increased at a slightly faster rate, rising 39 percent during this time.

We conducted this 

performance audit from October 2012 to November 2012 in accordance with 

generally accepted government auditing standards. Those standards require that we 

plan and perform the audit to obtain sufficient, appropriate evidence to provide a 

reasonable basis for our findings and conclusions based on our audit objectives. We 

believe that the evidence obtained provides a reasonable basis for our findings and 

conclusions based on our audit objectives.

10 On average, 

one quarter of individuals potentially eligible for the QI program were enrolled during 

fiscal years 2006 through 2009.11 However, the percentage of eligible individuals 

enrolled in the program climbed from 21 percent in fiscal year 2006 to 29 percent in 

fiscal year 2009. CMS does not have comprehensive national data on TMA 

enrollment and expenditures; the 41 states that had enrollment data reported that 

over 3.5 million individuals were enrolled in TMA in 2011, the most recent year for 

which complete enrollment data were reported by the highest number of states.12

Fewer states were able to report TMA expenditure data; however, 32 states reported 

TMA total expenditures of about $3.9 billion in 2011.13

The enclosures provide more specific information on the QI and TMA programs.

Enclosure I summarizes national and state information on QI eligibility, enrollment, 

and expenditures. Enclosure II provides general information on TMA requirements 

and state-reported information on certain program features, enrollment, and 

expenditures.

 

9

For example, some states do not separate data based on the provisions under which Medicaid 

coverage is extended.

We did not independently verify information reported by states.

10The increase in expenditures was due in part to increases in Medicare Part B premiums, which rose 

9 percent between calendar years 2006 and 2009.

11We recently reported that enrollment in Medicare Savings Programs like QI has been low 

historically, partly due to beneficiaries’ lack of awareness and cumbersome eligibility determination 

and enrollment processes. Legislative requirements aimed at boosting enrollment went into effect in 

2010. See GAO, Medicare Savings Programs: Implementation of Requirements Aimed at Increasing 

Enrollment, GAO-12-871 (Washington, D.C.: Sept. 14, 2012). 

12The 41 states that provided TMA enrollment data represented about 82 percent of nationwide 

Medicaid enrollment in June 2011.

13The 32 states that provided TMA expenditure data represented about 68 percent of nationwide 

Medicaid expenditures in fiscal year 2010.
Page 4 GAO-13-177R Medicaid for Certain Populations

Agency Comments

CMS provided us with technical comments, which we incorporated as appropriate. 

– – – – – 

As arranged with your offices, unless you publicly announce the contents of this 

report earlier, we plan no further distribution of it until 30 days after its issue date. 

Copies will then be sent to the Administrator of CMS and other interested parties. In

addition, the report will be available at no charge on the GAO website at 

http://www.gao.gov. 

If you or your staff have any questions about this report, please contact me at 

(202) 512-7114 or yocomc@gao.gov. Contact points for our Offices of 

Congressional Relations and Public Affairs may be found on the last page of this 

report. Major contributors to this report were Susan Anthony, Assistant Director; 

Hannah Locke; JoAnn Martinez-Shriver; and Samantha Poppe.

Carolyn L. Yocom

Director, Health Care

Enclosures – 2 
Enclosure I

Page 5 GAO-13-177R Medicaid for Certain Populations

Summary of Qualified Individual (QI) Program Enrollment

and Expenditures

Since 1998, Medicaid has paid for the Medicare Part B premiums for certain lowincome individuals who are not otherwise eligible for Medicaid under the Qualified 

Individual (QI) program. To be eligible for QI, an individual must be entitled to 

Medicare Part A, have income of at least 120 percent but less than 135 percent of 

the federal poverty level (FPL), and have resources valued at or below certain 

thresholds.1 The amount of federal funding available for this program is limited. The 

Centers for Medicare & Medicaid Services (CMS) makes allocations to states using 

a formula that takes into account the number of individuals potentially eligible to 

enroll in QI in each state. States receive 100 percent federal funding to pay Part B 

premiums for individuals enrolled in QI to the extent that federal funding does not 

exceed their allocations. While CMS adjusts funding as needed based on states’ 

projections of their enrollment and expenditures, states must limit enrollment in the 

QI program so that their spending does not exceed the amount of federal funds 

allocated to them. Table 1 provides nationwide data on the estimated number of QI 

eligibles, the number of enrolled individuals, and reported expenditures. Table 2 

provides state-specific information on QI enrollment for fiscal years 2006 through 

2009. Table 3 provides expenditure information by state for fiscal years 2006 

through 2011, the most recent year of expenditure data available.

Table 1: Nationwide Qualified Individual (QI) Program Eligibles, Enrollment, and Expenditures

Fiscal year

Potentially 

eligible individuals 

(in thousands)a

Enrolled 

individuals 

(in thousands)b Percentage enrolledb Expenditures (dollars in millions)

2006 1,521 326 21% $310

2007 1,518 358 24 353

2008 1,428 381 27 411

2009 1,473 426 29 431

2010 1,446 — — 547

2011 1,453 — — 660

Source: GAO analysis of CMS data.

a

CMS estimates the number of potential QI eligibles using Census data on the number of Medicare beneficiaries who are not 

enrolled in Medicaid whose incomes are at least 120 percent but less than 135 percent of the federal poverty level. The 

number of potentially eligible individuals is based on the average of the 3 preceding years; for example, 2006 is based on an 

average of the number of potential eligibles for 2003 through 2005. According to CMS, the annual estimates of potential QI 

eligibles are overstated because they do not take into consideration certain eligibility requirements, such as resource limits.

b

The “─” indicates that data were not available for a particular year. As of October 2012, only 40 states had data in the 

Medicaid Statistical Information System for fiscal year 2010, and no fiscal year 2011 data were available.

 

1

Social Security Act (SSA) §§ 1902(a)(10)(E)(iv), 1933,1905(p), codified at 42 U.S.C. 

§§ 1396a(a)(10)(E)(iv), 1396u-3, 1396d(p). In most states, in order to qualify for QI, individuals 

must meet resource limits established for the Low-Income Subsidy program (LIS), a program 

established to help low-income individuals pay for prescription drugs under Medicare Part D. 

In 2012, the resource limit for LIS was $6,940 for an individual and $10,410 for a couple.
Enclosure I

Page 6 GAO-13-177R Medicaid for Certain Populations

Table 2: Enrollment in the Qualified Individual (QI) Program by State, Fiscal Years 2006 through 2009

Number of individuals

Fiscal year

State 2006 2007 2008 2009

Alabama 14,985 16,029 16,272 14,128

Alaska 75 103 110 115

Arizona 1,234 9,790 11,090 13,200

Arkansas 1,918 6,258 7,870 8,858

California 7,314 10,043 12,132 13,779

Colorado 2,306 2,022 2,315 2,574

Connecticut 7,120 7,974 8,777 9,444

Delaware 1,670 1,657 1,761 1,912

District of Columbiaa N/A N/A N/A N/A

Florida 35,727 34,784 39,090 46,320

Georgia 17,297 18,577 20,027 23,237

Hawaii 620 615 773 987

Idaho 1,190 1,290 1,399 1,548

Illinois 14,504 11,835 12,702 12,892

Indiana 6,896 7,050 6,924 6,538

Iowa 2,249 2,447 2,591 2,814

Kansas 1,946 2,277 2,585 2,972

Kentucky 8,695 8,678 9,450 10,762

Louisiana 11,311 12,861 12,897 14,103

Maine 5,691 2,226 3,097 4,444

Maryland 3,615 4,086 4,428 5,211

Massachusetts — — — 7,332

Michigan 8,460 9,746 10,126 10,557

Minnesota 3,453 3,509 3,859 4,470

Mississippi 9,982 9,983 9,789 11,181

Missouri 330 253 280 425

Montana 313 365 443 516

Nebraska 2,145 2,519 2,476 3,013

Nevada 2,648 2,671 2,961 3,305

New Hampshire 917 990 1,164 1,536

New Jersey 8,638 8,408 8,053 7,686

New Mexico — — — 188

New York 33,273 35,186 32,483 30,887

North Carolina 17,121 18,674 19,592 21,939

North Dakota 413 452 485 592

Ohio 10,277 12,993 14,485 17,020

Oklahoma 6,165 6,557 6,950 7,583

Oregon 3,385 4,293 4,840 6,312

Pennsylvania 19,346 20,562 21,227 23,392

Rhode Island 1,898 1,809 1,943 2,072
Enclosure I

Page 7 GAO-13-177R Medicaid for Certain Populations

Number of individuals

Fiscal year

State 2006 2007 2008 2009

South Carolina 7,329 8,183 7,156 7,243

South Dakota 857 952 1,031 1,163

Tennessee — — — — 

Texas 24,701 28,005 29,690 32,882

Utah — 1,041 966 1,038

Vermont — — 2,949 2,749

Virginia 7,002 7,815 8,334 9,444

Washington 5,449 5,347 5,835 6,334

West Virginia 3,529 4,129 4,442 5,137

Wisconsin 1,642 2,045 2,572 3,097

Wyoming 494 496 504 612

Total 326,130 357,585 380,925 425,543

Legend: N/A = Not Applicable

Source: GAO analysis of CMS data.

Notes: The “─” indicates that data were not available for a particular year.

a

The District of Columbia does not participate in QI because its Medicaid policies result in all applicants in the QI income range 

qualifying for a higher level of benefits.
Enclosure I

Page 8 GAO-13-177R Medicaid for Certain Populations

Table 3: Federal Medicaid Expenditures for the Qualified Individual (QI) Program by State, Fiscal Years 

2006 through 2011

Dollars in thousands

Fiscal year

State 2006 2007 2008 2009 2010 2011

Alabama $31,171 $16,622 $17,498 $16,475 $14,657 $21,009

Alaska 41 106 109 97 27 316

Arizona 10,321 11,467 11,953 12,726 15,482 17,334

Arkansas 4,657 6,194 7,043 9,142 11,487 13,231

California 11,336 12,981 17,832 21,745 27,636 28,552

Colorado 1,859 2,436 2,568 2,981 4,146 5,305

Connecticut 6,716 7,838 9,212 10,044 3,883 4,522

Delaware 262 254 246 625 2,092 3,378

District of Columbiaa N/A N/A N/A N/A N/A N/A

Florida 26,485 30,147 32,802 35,566 55,327 63,834

Georgia 17,646 17,464 20,268 22,582 27,648 23,502

Hawaii — 483 839 767 1,031 1,286

Idaho 1,104 1,364 1,528 1,660 1,825 2,339

Illinois 12,844 14,558 16,639 16,113 20,843 23,813

Indiana 5,960 4,565 8,559 4,839 5,852 7,283

Iowa 2,118 2,478 2,675 2,762 3,348 4,241

Kansas 1,435 1,871 2,423 2,750 3,386 4,443

Kentucky 172 14,917 9,131 10,371 13,459 15,761

Louisiana 10,031 11,438 13,478 14,377 17,320 20,326

Maine 3,695 3,748 2,494 3,469 4,847 5,649

Maryland 2,793 3,556 4,088 4,590 5,883 7,488

Massachusetts 3,307 3,199 10,231 7,957 8,840 10,784

Michigan 6,966 8,537 10,242 9,944 10,854 15,010

Minnesota 2,811 3,585 3,870 4,247 5,261 6,228

Mississippi — — 22,307 10,642 12,574 14,834

Missouri 2,378 3,319 4,172 4,856 5,870 5,898

Montana 560 787 643 1,209 1,305 1,591

Nebraska 1,707 2,175 2,289 2,761 2,735 2,489

Nevada 1,784 2,187 2,161 2,568 3,396 4,516

New Hampshire — — — — 6,394 2,306

New Jersey 8,725 9,443 9,256 8,916 9,866 10,468

New Mexico 1,880 2,189 2,577 2,872 3,690 4,368

New York 32,098 38,064 42,222 35,657 40,421 46,178

North Carolina 14,145 22,145 14,352 20,603 25,681 27,744

North Dakota 343 443 467 540 658 724

Ohio 12,444 12,783 18,216 17,051 20,903 25,283

Oklahoma 5,191 6,377 7,189 7,397 8,757 10,469

Oregon 4,827 6,759 7,823 8,656 10,785 12,874

Pennsylvania 16,312 19,524 20,719 22,568 26,411 33,435
Enclosure I

Page 9 GAO-13-177R Medicaid for Certain Populations

Dollars in thousands

Fiscal year

State 2006 2007 2008 2009 2010 2011

Rhode Island 1,767 1,550 1,758 1,685 1,829 3,156

South Carolina 6,515 5,121 8,010 7,703 7,520 10,006

South Dakota 780 926 974 1,070 1,298 1,707

Tennessee 146 816 365 14,469 21,392 18,896

Texas 19,385 20,593 17,859 18,767 29,199 75,288

Utah 120 546 2,538 1,500 1,410 2,751

Vermont — — — 1,377 10,351 3,601

Virginia 5,213 6,577 7,420 8,036 10,830 13,428

Washington 5,098 5,229 5,334 5,902 7,833 9,698

West Virginia 3,110 3,621 4,117 4,514 5,614 6,602

Wisconsin 1,268 1,981 2,012 3,476 4,395 5,406

Wyoming 743 409 452 482 718 643

Total $310,272 $353,370 $410,960 $431,106 $546,967 $659,991

Legend: N/A = Not Applicable

Source: GAO analysis of CMS data.

Notes: The “─” indicates that data were not available for a particular year.

a

The District of Columbia does not participate in QI because its Medicaid policies result in all applicants in the QI income range

qualifying for a higher level of benefits.
Enclosure II

Page 10 GAO-13-177R Medicaid for Certain Populations

Transitional Medical Assistance (TMA)

Requirements and State Survey Responses Regarding the Program

Since 1988, the Medicaid program has required states to offer at least 6, and up to 

12, months of Transitional Medical Assistance (TMA) to certain low-income families 

who would otherwise lose coverage because of hours of employment or earned 

income, or the loss of a time-limited earnings disregard.1 Under this provision—set to 

expire on December 31, 2012—families are entitled to an initial 6 months of 

Medicaid coverage, and states must provide families with the same level of Medicaid 

benefits that they were previously receiving. However, under the Social Security Act 

(SSA), states are given the option of meeting this requirement by using Medicaid 

funds to pay for a family’s premiums or other related costs for employer-based 

health coverage if it is available.2 After the initial 6-month period, families may 

continue coverage for an additional 6 months if the family’s earnings, minus child 

care costs, do not exceed 185 percent of the federal poverty limit (FPL), among 

other requirements.3 Additionally, in the second 6-month period, states may require 

families with incomes at or above 100 percent of the FPL to pay a premium for the 

additional coverage.4 States vary widely in the income eligibility levels that families 

must exceed in order to qualify for TMA—ranging from up to 17 percent of the FPL 

in Arkansas to 215 percent of the FPL in Minnesota. See table 4 for groupings of 

states by their respective income eligibility levels. In order to qualify for benefits at 

the state’s applicable eligibility level, under the expiring TMA provision, families must 

report earnings minus child care costs over the course of both 6-month periods as 

specified in the statute.5

 

1

Social Security Act (SSA) §1925, codified at 42 U.S.C. § 1396r-6. Under permanent provisions of the 

SSA, Medicaid coverage continues for 4 months for families who would otherwise lose coverage 

because of an increase in earned income or hours of employment or increased child or spousal 

support. See SSA §§ 1902(e)(1)(A), 1931(c), 406(h) (as in effect on July 16, 1996), codified at 

42 U.S.C. §§ 1396a(e)(1)(A), 1396u-1(c). Section 1925 preempts section 1902(e)(1)(A) through 

December 31, 2012, for families with earned income.

2

SSA § 1925(a)(4)(B), codified at 42 U.S.C. 1396r-6(a)(4)(B). 

3

See SSA § 1925(b)(1) and (b)(3)(A)(iii)(III), codified at 42 U.S.C. § 1396r-6(b)(1) and (b)(3)(A)(iii)(III). 

In 2012, for a family of three, 185 percent of the FPL is $35,317 annually, or 

$2,943 per month.

4

SSA § 1925(b)(5), codified at 42 U.S.C. § 1396r-6(b)(5).

5

See SSA § 1925(b)(2)(B), codified at 42 U.S.C. § 1396r-6(b)(2)(B).
Enclosure II

Page 11 GAO-13-177R Medicaid for Certain Populations

Table 4: Summary of Transitional Medical Assistance (TMA) Income Eligibility Levels, as a Percentage of 

the Federal Poverty Level (FPL) in 2012

TMA income eligibility level Number of states

Less than 50 percent of FPL:

Alabama, Arkansas, Georgia, Idaho, Indiana, Kansas, Louisiana, Mississippi, 

Missouri, New Hampshire, North Carolina, Oregon, Pennsylvania, Texas, Utah, 

Virginia, West Virginia 17

50 to 100 percent of FPL:

Alaska, Florida, Hawaii, Iowa, Kentucky, Michigan, Montana, Nebraska, Nevada, 

New Mexico, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, 

Washington, Wyoming. 17

More than 100 percent of FPL:

Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Illinois, 

Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Rhode 

Island, Tennessee, Vermont, Wisconsin 17

Source: GAO analysis of July 2012 data from Kaiser Commission on Medicaid and the Uninsured.

Note: This table is based on data for upper income limits of Medicaid eligibility for low-income families under SSA § 1931, 

codified at 42 U.S.C. § 1396u-1. 

In 2009, the American Recovery and Reinvestment Act of 2009 (ARRA) changed 

some aspects of TMA coverage for families. In particular, ARRA offered states the 

option to extend Medicaid eligibility to families for a period of 12 months at the 

outset—rather than an initial period of 6 months followed by a second 6-month 

period.6 Additionally, while states were not historically required to report on TMA 

separately from other Medicaid data, ARRA changed this by adding a new provision 

that requires all states to collect and submit to the Department of Health and Human 

Services (HHS), and make publicly available, information on average monthly 

enrollment and average monthly participation rates for adults and children covered 

under the expiring TMA provision.7 In light of this requirement, the Centers for 

Medicare & Medicaid Services (CMS)—the agency within HHS that administers the 

Medicaid program—has made some initial efforts to collect relevant data from the 

states. In 2009, CMS issued guidance and provided instructions and a template for 

state submission of enrollment data, specifying that states begin reporting in July 

2010. While CMS officials report having received data from some states, officials 

indicated that they have not enforced the requirement because of competing agency 

priorities.

 

6

Pub. L. No. 111-5, § 5004, 123 Stat. 115, 503. According to CMS, 13 states selected this option. 

These states are Alaska, Colorado, Connecticut, Florida, Idaho, Maryland, Montana, New Mexico, 

New York, Ohio, Oregon, South Dakota, and Wisconsin.

7

States must also report the number and percentage of children who continue eligibility in another 

Medicaid eligibility group or are enrolled in the State Children’s Health Insurance Program, after their 

TMA eligibility ends. Under the new provision, HHS is responsible for specifying the format, timing, 

and frequency for this reporting and HHS is required to submit an annual report to Congress on such 

enrollment and participation rates. SSA § 1925(g), codified at 42 U.S.C. § 1396r-6(g).
Enclosure II

Page 12 GAO-13-177R Medicaid for Certain Populations

We asked state Medicaid officials to provide information about their current TMA 

program policies and to provide enrollment and expenditure information from 2006 

through the most recent year available. Forty-five states responded to the survey.8

While all 45 states provided information about their TMA program policies, fewer 

states were able to provide complete enrollment or expenditure data. Specifically, 

41 states provided at least some years of enrollment data, and 32 states provided at 

least some years of expenditure data.9

• All but one state reported offering a maximum of 12 months of continued 

Medicaid coverage through TMA.

State responses are summarized below.

10

• The states that were able to break out the number of enrollees based on the 

provisions under which Medicaid coverage is extended generally reported over 

90 percent of enrollees were eligible for TMA because of earnings. Other 

enrollees were eligible for extended Medicaid coverage because of increased 

child or spousal support as provided for by permanent Medicaid provisions.

• Most states reported taking steps to verify the income of TMA enrollees. The 

verification methods used in these states included self-attestation, electronic data 

matching, and employer or client verification.11

• Twenty-three states reported implementing an option to pay enrollees’ costs 

associated with employer sponsored insurance in providing continued Medicaid 

coverage under TMA.

• Seventeen states reported that they had access to data on the extent to which 

TMA enrollees participate in employer-sponsored insurance.12

Forty-one states reported over 3.5 million individuals enrolled in TMA in 2011, the 

most recent year for which all 41 states reported data. States provided enrollment 

data for the other 5 years, but generally to a lesser extent. In addition, although 

states are not required to track TMA expenditures, 32 states reported total TMA 

expenditures of about $3.9 billion for 2011, the most recent year for which all 

reporting states provided data. Table 5 summarizes total enrollment and 

 

8

The 6 states that did not respond to our survey were Connecticut, Montana, New Hampshire, North 

Carolina, South Dakota, and Vermont.

9

Some states do not separate data based on the provisions under which Medicaid coverage is 

extended. 

10South Carolina reported TMA coverage for a maximum of 24 months.

11States reported using a variety of methods to verify income of TMA enrollees. For example, 

electronic data matching can include the use of state and federal databases to help determine 

income. Employer and client verification methods can include either party providing check stubs or a 

written statement including income information.

12TMA enrollees are allowed to participate in employer-sponsored insurance and in the TMA program 

at the same time. In these cases, Medicaid is the secondary payer for any costs incurred during the 

TMA coverage period.
Enclosure II

Page 13 GAO-13-177R Medicaid for Certain Populations

expenditures reported by responding states for 2006 through 2011. Tables 6 and 7 

provide state-specific enrollment and expenditure data for these years.

Table 5: Total Enrollment and Expenditures for the Transitional Medical Assistance (TMA) Program for 

All States Reporting Data, 2006 through 2011

2006 2007 2008 2009 2010 2011

Total enrollment 

(in millions)a

(number of states 

providing data) 2.78 (N=35) 3.13 (N=38) 3.15 (N=40) 3.08 (N=41) 3.22 (N=41) 3.54 (N=41)

Total expenditures 

(dollars in billions) 

(number of states 

providing data) $1.80 (N=27) $3.09 (N=32) $2.91 (N=32) $2.86 (N=31) $3.29 (N=32) $3.86 (N=32)

Source: GAO analysis of state data.

Notes: State data are as of November 13, 2012. State officials were asked to provide an unduplicated enrollment number for 

each year of available data. Alaska and Arizona could not provide unduplicated enrollment data. Twenty-one states reported 

enrollment data by state fiscal year, 6 reported by federal fiscal year, 12 reported by calendar year and 2 reported an average 

monthly enrollment. Twenty-two states reported expenditure data by state fiscal year, 4 reported by federal fiscal year, and 

6 reported by calendar year.

a

Some states do not separate data based on the provisions under which Medicaid coverage is extended. However, the states 

that were able to break out the number of enrollees based on the provisions under which Medicaid coverage is extended 

generally reported over 90 percent of enrollees were eligible for TMA due to earnings.
Enclosure II

Page 14 GAO-13-177R Medicaid for Certain Populations

Table 6: Enrollment in the Transitional Medical Assistance (TMA) Program by State, Years 2006 through 

2011

Number of individuals

State 2006 2007 2008 2009 2010 2011

Alabama 3,170 2,408 1,928 2,103 2,370 1,927

Alaskaa 1,740 1,811 1,833 1,902 2,168 2,889

Arizonab ─ ─ 45,445 43,836 42,843 45,562

Arkansas 5,288 4,818 4,524 3,793 3,133 3,235

California 227,419 297,103 316,787 312,139 323,300 336,635

Colorado ─ ─ 58,817 60,152 54,697 64,643

Connecticut ─ ─ ─ ─ ─ ─

Delaware 35,061 13,168 14,940 14,179 14,351 17,585

District of Columbia 2,917 2,342 1,762 1,287 1,140 1,332

Florida 328,912 277,890 280,906 324,094 384,227 424,312

Georgia 148,259 106,472 127,110 118,149 110,933 111,554

Hawaii 6,151 4,850 4,808 4,536 4,892 6,271

Idaho 29,160 16,131 4,654 4,070 4,280 7,089

Illinois ─ 358,910 374,673 382,085 399,244 445,481

Indiana 113,527 113,095 109,547 99,217 99,173 109,114

Iowa ─ 49,961 46,569 44,342 44,358 41,180

Kansas 25,739 22,061 18,020 14,521 10,910 15,632

Kentucky 58,574 59,821 56,374 52,162 48,590 54,119

Louisiana 23,391 27,689 29,262 28,575 25,830 24,893

Maine 22,400 23,661 23,940 21,440 20,269 23,427

Maryland 19,424 15,744 14,186 32,412 69,080 96,945

Massachusetts 63,376 65,120 70,208 73,528 69,696 64,886

Michigan 155,329 140,315 130,920 142,853 135,214 166,496

Minnesota 27,607 28,846 30,108 29,121 30,036 35,359

Mississippi ─ ─ ─ 12,356 35,946 37,348

Missouri 238,727 84,676 104,803 117,594 112,421 109,357

Montana ─ ─ ─ ─ ─ ─

Nebraska 31,335 28,060 18,443 23,928 35,448 40,903

Nevada 13,782 10,092 3,102 2,814 8,156 10,297

New Hampshire ─ ─ ─ ─ ─ ─

New Jersey 23,066 26,084 30,889 32,973 32,739 35,627

New Mexico 59,151 56,436 52,923 53,100 52,949 50,532

New York ─ ─ ─ ─ ─ ─

North Carolina ─ ─ ─ ─ ─ ─

North Dakotac ─ ─ ─ ─ ─ ─

Ohio 360,876 369,752 352,192 328,838 320,639 371,193

Oklahoma 14 125 469 48 20 86

Oregon 80,614 63,517 52,328 48,218 55,021 70,197

Pennsylvania 223,732 277,879 294,864 251,688 233,278 240,330

Rhode Island 19,165 15,763 12,162 9,718 9,776 8,128
Enclosure II

Page 15 GAO-13-177R Medicaid for Certain Populations

Number of individuals

State 2006 2007 2008 2009 2010 2011

South Carolina 52,840 47,658 55,520 53,583 53,876 62,190

South Dakota ─ ─ ─ ─ ─ ─

Tennessee ─ 178,188 95,687 46,018 50,559 55,669

Texas 214,713 174,581 152,595 130,002 129,332 135,068

Utah 12,180 15,155 20,808 21,807 21,486 22,846

Vermont ─ ─ ─ ─ ─ ─

Virginia ─ ─ ─ ─ ─ ─

Washington ─ ─ ─ ─ ─ ─

West Virginia 7,789 6,060 4,322 4,046 4,415 3,135

Wisconsin 140,313 138,053 131,371 131,424 158,621 187,016

Wyoming 3,944 4,081 4,005 3,691 3,760 4,013

Total states providing 

enrollment data 35 38 40 41 41 41

Total for states reporting 

enrollment 2,779,685 3,128,376 3,153,804 3,082,342 3,219,176 3,544,501

Source: GAO analysis of state data.

Notes: State data are as of November 13, 2012. State officials were asked to provide an unduplicated enrollment number for 

each year. Alaska and Arizona could not provide unduplicated enrollment data. Officials in 21 states reported enrollment data 

by state fiscal year, 6 reported by federal fiscal year, 12 reported by calendar year, and 2 reported average monthly 

enrollments.

Some states do not separate data based on the provisions under which Medicaid coverage is extended. However, the states 

that were able to break out the number of enrollees based on the provisions under which Medicaid coverage is extended 

generally reported over 90 percent of enrollees were eligible for TMA due to earnings

The “─” indicates that data were not available from the state.

a

For a number of reasons, Alaska does not determine annual, unduplicated enrollment for TMA. Instead, the state tracks 

monthly TMA enrollment and provided us with the average monthly TMA enrollment for state fiscal years 2006 through 2012.

However, a state Medicaid official noted that these data have limitations. For example, the enrollment data have not been 

adjusted for retroactive eligibility determinations, and for state fiscal years 2006 through 2010, TMA enrollment may be 

overstated because of the potential overlap between eligibility categories that existed during that time.

b

Arizona Medicaid officials told us that they were not able to provide an unduplicated count.

c

Officials in North Dakota were not able to provide TMA enrollment data for all years; however, they were able to produce a 

point-in-time enrollment of 6,066 individuals as of September 30, 2012.
Enclosure II

Page 16 GAO-13-177R Medicaid for Certain Populations

Table 7: Reported Expenditures for the Transitional Medical Assistance (TMA) Program by State, 2006 

through 2011

Dollars in thousands

State 2006 2007 2008 2009 2010 2011

Alabama $2,102 $1,795 $1,596 $1,599 $1,676 $2,283

Alaska ─ ─ ─ ─ ─ ─

Arizona ─ ─ ─ ─ ─ ─

Arkansas ─ ─ ─ ─ ─ ─

California 140,258 161,731 180,819 139,563 138,335 186,278

Colorado ─ ─ ─ ─ ─ ─

Connecticut ─ ─ ─ ─ ─ ─

Delaware ─ ─ ─ ─ ─ ─

District of Columbia ─ ─ ─ ─ ─ ─

Florida ─ 195,949 173,440 194,094 251,171 296,136

Georgia 132,323 25,673 94,009 114,709 97,227 75,333

Hawaii 8,778 8,645 4,568 9,257 9,738 11,217

Idaho 34,349 21,305 8,994 7,820 10,455 15,735

Illinois ─ 336,931 389,190 439,819 504,305 563,039

Indiana 92,055 99,702 98,091 94,301 92,932 91,440

Iowa 48,644 45,857 45,474 44,487 42,130 45,025

Kansas 23,430 23,833 18,823 16,204 12,772 21,785

Kentucky 60,571 66,954 70,800 71,606 66,000 74,405

Louisiana 16,059 18,325 22,478 26,285 24,603 21,197

Maine 50,593 57,440 56,365 53,855 51,289 58,173

Maryland 25,049 21,517 19,451 53,845 138,587 193,185

Massachusetts 77,683 85,291 101,443 109,969 105,848 100,472

Michigan ─ 307,621 151,110 ─ 251,771 313,474

Minnesota 39,354 47,180 54,867 57,040 58,358 66,827

Mississippi ─ ─ ─ ─ ─ ─

Missouri ─ ─ ─ ─ ─ ─

Montana ─ ─ ─ ─ ─ ─

Nebraska 29,613 31,556 28,918 27,438 39,823 50,893

Nevada ─ ─ ─ ─ ─ ─

New Hampshire ─ ─ ─ ─ ─ ─

New Jersey 16,645 24,851 33,728 37,250 40,074 43,894

New Mexico 87,946 95,415 96,049 97,414 93,521 82,437

New York ─ ─ ─ ─ ─ ─

North Carolina ─ ─ ─ ─ ─ ─

North Dakota ─ ─ ─ ─ ─ ─

Ohio 314,746 384,472 339,743 390,330 365,884 525,133

Oklahoma 25 27 373 47 2 53

Oregon 93,012 64,796 59,659 58,105 76,398 103,688

Pennsylvania 241,658 323,900 352,511 323,874 299,649 319,087

Rhode Island 24,865 22,021 18,526 13,407 12,211 10,977
Enclosure II

Page 17 GAO-13-177R Medicaid for Certain Populations

Dollars in thousands

State 2006 2007 2008 2009 2010 2011

South Carolina ─ 78,952 83,914 97,815 94,104 117,013

South Dakota ─ ─ ─ ─ ─ ─

Tennessee ─ 302,074 160,141 100,932 118,499 139,625

Texas 72,008 73,745 82,661 105,498 107,592 125,559

Utah 20,663 18,291 18,694 22,993 23,868 18,411

Vermont ─ ─ ─ ─ ─ ─

Virginia ─ ─ ─ ─ ─ ─

Washington ─ ─ ─ ─ ─ ─

West Virginia 9,505 9,589 13,337 10,990 10,826 11,368

Wisconsin 128,524 123,186 121,724 121,964 137,355 160,679

Wyoming 13,017 14,519 12,636 12,817 12,743 12,406

Total states reporting 

expenditure data 27 32 32 31 32 32

Total for states 

reporting expenditures $1,803,472 $3,093,143 $2,914,130 $2,855,327 $3,289,746 $3,857,227

Source: GAO analysis of state data.

Notes: State data are as of November 13, 2012. State officials were asked to provide total expenditures, including federal and 

state portions, for TMA; these data can include expenditures for some or all provisions under which Medicaid coverage is 

extended. Unless noted, states returned expenditure information for a 12-month period. The boundaries of this period varied, 

with 22 reporting expenditure data by state fiscal year, 4 reporting by federal fiscal year, and 6 reporting by calendar year. 

The “─” indicates that data were not available from the state.

(291086)
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