Clinton issues order to further help disabled obtain Medicaid coverage

From CNN White House Producer Timothy McCaughan

WASHINGTON (CNN) -- President Clinton on Friday signed an executive order designed to prevent people with disabilities from being forced into poverty to gain Medicaid coverage.

The action would give states the funds to allow money used for food, shelter and other necessities to be disregarded as income when applying to the program.

President Clinton

The president informed members of the disabled community of the proposed regulation change at a White House meeting Friday morning. The expansion will cost $960 million over five years and is designed as an option for states to expand their coverage.

As an administrative action, the measure needs no other approval and goes into effect immediately.

Medicaid coverage for people with disabilities has been limited, as many only qualify if their medical expenses are very high -- forcing their income below the poverty level. This change allows "medical needy" status to be reached without counting money spent on essentials, such as food and shelter, as income.

In addition, the broader rules can be used to encourage people to return to work or continue to work by ensuring that they will not lose their health insurance coverage if their income increases slightly.

The president also urged Congress to pass the the bipartisan Family Opportunity Act of 2000. That legislation would further help people with disabilities by allowing families with disabled children to buy into Medicaid before their incomes became too high and extending coverage that would otherwise be time-limited to certain children who, without the help, would become further disabled.

He also called on Congress to pass $50 million in new grants to help enhance home and community-based programs designed to avoid the need for institutionalization of certain disabled people.