Medicaid program; federal financial participation for inmates in public institutions and individuals in an institution for mental disease or tuberculosis--Health Care Financing Administration. Proposed rule.

Under current Medicaid regulations, Federal matching funds (FFP) are not available in expenditures for Medicaid services provided to an individual who is an inmate of a public institution. In addition, FFP is not available in expenditures for a patient under age 65 in an institution for mental diseases or tuberculosis unless the individual is under age 22 and receiving inpatient psychiatric services. However, regulations provide an exception for noninstitutional services furnished during the month in which the individual becomes an inmate or patient. We are proposing to remove this exception and clarify that no Federal Medicaid funds are available for any services to those individuals from the date of admission to the date of discharge. The change would bring the regulations into conformance with the Medicaid statute.