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incomes between 200-300% of federal poverty level will be served through the Healthy Families Program. As such, the Healthy Families Program will redetermine eligibility prior to the child’s first birthday. Prior to the child’s second birthday, the Healthy Families Program will redetermine eligibility for the S-CHIP Healthy Families Program. If at year two, the household income exceeds that of the Healthy Families Program, 250% of the federal poverty level, the child will be informed about C-CHIP if applicable. The authorizing statute for Healthy Families also requires the state to assess the need for specialized services in two additional areas: rural health and substance abuse. Rural health. On December 21, 1999, the US Department of Health and Human Services approved a state plan amendment which included supplemental rural health services. The supplemental services, referred to as the Rural Health Demonstration Projects, were established to improve access to health care services for medically underserved and uninsured populations in rural areas and special populations who have rural occupations (farm workers, loggers, etc.). At the inception of the Rural Health Demonstration Projects, $6 million ($2.038 million State General Fund, and $3.962 million FFP) in augmentation was authorized in state law to develop and enhance existing health care delivery networks through contract amendments with participating HFP health, dental and vision plans. This augmentation addressed geographic access barriers and access barriers for special population subscribers enrolled in the HFP. In the recent state budget act, the source of state funds for the Rural Health Demonstration Projects has changed. The Tobacco Tax and Health Protection Act of 1988, as added by Proposition 99, established the Cigarette and Tobacco Products Surtax fund. These funds are to be allocated for use in tobacco education and tobacco use prevention programs, tobacco-related disease research, environmental protection and recreational resource enhancement programs, and health care services for low- income, uninsured Californians. MRMIB was appropriated Proposition 99 funds in the State’s 2003 Budget Act and authorized in State law (Chapter 161, Statues of 2003) to use these funds as the match to draw Title XXI SCHIP funds for the Rural Health Demonstration Projects. Substance abuse. The authorizing statute directs MRMIB, in consultation with the Department of Alcohol and Drug Programs, to assess the feasibility of providing supplementary services for substance abusers. The core benefit package includes those services made available to state employees, but some have argued that additional Effective Date: Approval Date: November 1, 2009 HFP Family Contribution Increase November 1, 2009 HFP Co-Payment Increase November 1, 2009 HFP Limited Dental Plan Choice for New Subscribers

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