Medicaid program; federal financial participation for inmates in public institutions and individuals in an institution for mental disease or tuberculosis--HCFA. Final rule.

This rule brings regulations into conformance with the Medicaid statute by clarifying that no federal financial participation (FFP) is available for any services furnished to certain institutionalized individuals. These are individuals who are inmates of public institutions which are not medical institutions or patients under age 65 in institutions for mental diseases or tuberculosis. In accordance with statute, an exception is provided for individuals under age 22 who are receiving covered inpatient services in psychiatric facilities. Prior regulations provided that FFP was available for noninstitutional services furnished during the month in which the individual became an inmate or patient and the last month of institutionalization and were inconsistent with the statute.