Medical Assistance under the TEFRA Option

2.3.6.3 Financial Eligibility

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.

This subchapter includes financial eligibility requirements. Financial eligibility requirements involve a person’s income or assets.

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) financial eligibility policies. Specific differences are indicated below.

This subchapter includes policies that apply to MA under the TEFRA option and links to policies that apply to all MA programs, MA-ABD, and all Minnesota Health Care Programs (MHCP).

MA under the TEFRA Option Assets

There is no asset limit for children younger than 21.

MA under the TEFRA Option Household Composition

The household size is one, only the child.

MA under the TEFRA Option Income

Income eligibility is determined based only on the child’s income. If a child has income above 100% FPG, they may be eligible with a medical spenddown. See the MA-ABD Medical Spenddown policy for more information.

MA under the TEFRA Option Financial Eligibility

The MA-ABD income policies are used to determine the child’s income eligibility. See MA-ABD Income section for more information.

Legal Citations

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

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

Published:  June 1, 2016

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