Expanding coverage to parents through Medicaid Section 1931.

for parents has primarily been limited to those enrolled in welfare. The only way for states to cover more parents was through the federal waiver process, which often involved long and complicated negotiations with the Health Care Financing Administration (HCFA) and required states to achieve offsetting Medicaid savings. By adding Section 1931 to the Social Security Act, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) created a new category of Medicaid eligibility for low-income parents. It requires states to cover at least those parents with incomes below 1996 state Aid to Families with Dependent Children (AFDC) income thresholds, regardless of whether they receive cash assistance. It also allows states to cover those with higher incomes. About half of all states already have expanded coverage beyond the minimum federal requirements. How does this law work?