Medical Assistance under the TEFRA Option

2.3.6.1.2 Parental Fees

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.

Because MA under the TEFRA option only considers the child’s income in deciding eligibility, parents must share the cost of care by paying a parental fee. See the MA Cost Sharing policy for more information.

Parents of TEFRA enrollees are not required to re-verify their income at the TEFRA renewal.

Legal Citations

Code of Federal Regulations, title 42, section 1396A, subdivision e

Code of Federal Regulations, title 42, section 435.225

Code of Federal Regulations, title 42, section 412.424

Minnesota Rules, part 9550, subpart 6200-6240

Minnesota Statutes, section 252.27

Minnesota Statutes, section 256B.14

The Tax Equity and Fiscal Responsibility Act (TEFRA), Public Law 97-248, section 134