Utilization of Medicaid services by AFDC recipients.

Recipients of assistance payments under Aid to Families with Dependent Children (AFDC) are also eligible for medical benefits under Medicaid (title XIX of the Social Security Act). Typically, persons who are certified as eligible for Medicaid receive an identifying card to present when they receive treatment or care. The provider, in turn, files a claim for payment with the State agency administering the program and is paid by the State agency from public funds. Similar to AFDC, Medicaid is an assistance program for the needy that is State-administered, with the Federal Government providing at least half the funds. Under the Medicaid program, all States must provide inpatient hospital services, outpatient hospital services, laboratory and X-ray services, skilled nursing facility services for individuals over age 21, home health care services for individuals eligible for skilled nursing services, physicians’ services, family planning services, and early periodic screening, diagnosis, and treatment services for individuals under age 21. States must provide these services to all AFDC and most Supplemental Security Income (SSI) recipients. Many States offer optional services such as prescribed drugs and cover optional groups of beneficiaries such as the medically needy (those whose incomes and resources are sufficient to provide for basic needs but are insufficient to meet their medical expenses). Periodically, the States are surveyed by the Social Security Administration on the financial circumstances and demographic characteristics of their AFDC caseloads. Along with this information the States were asked in March 1977 to provide data on the use of Medicaid services. This note is based on the replies from 27 States, which contained 63 percent of the total AFDC population.