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6.4.1.1 Coverage provided to targeted low-income children through such expenditures must meet the coverage requirements above; Describe the coverage provided by the alternative delivery system. The state may cross reference section 6.2.1 - 6.2.28. (Section 2105(c)(2)(B)(i)) (42 CFR 457.1005(b))

6.4.1.2 The cost of such coverage must not be greater, on an average per child basis, than the cost of coverage that would otherwise be provided for the coverage described above; Describe the cost of such coverage on an average per child basis.

(Section 2105(c)(2)(B)(ii)) (42 CFR 457.1005(b))

6.4.1.3 The coverage must be provided through the use of a community - based health delivery system, such as through contracts with health centers receiving funds under section 330 of the Public Health Service Act or with hospitals such as those that receive disproportionate share payment adjustments under section 1886(c)(5)(F) or 1923 of the Social Security Act. Describe the community based delivery system. (Section 2105(c)(2)(B)(iii)) (42 CFR 457.1005(a))

6.4.2 x Purchase of Family Coverage. Describe the plan to purchase family coverage. Payment may be made to a state for the purpose of family coverage under a group health plan or health insurance coverage that includes coverage of targeted low-income children, if it demonstrates the following: (Section 2105(c)(3)) (42 CFR 457.1010)

We propose to use the state employee standard benefit package which meets the requirements of a benchmark plan under Title XXI to compare the cost of covering two low-income children in an average three-person BadgerCare Plus family to the cost of covering the entire three-person family under a BadgerCare Plus /Medicaid HMO plan. The state employee standard benefit package meets the requirements of a benchmark plan under Title XXI. Our comparison of costs of children under the benchmark plan as opposed to the cost of families under BadgerCare Plus meets the cost effectiveness requirements of the law. It should be noted, however, that the State employee plan and other employer-based, commercial coverage are frequently limited to two options, single (employee only) or family (employee plus family members). Coverage for children only is generally not available unless family coverage is elected by the employee.

WISCONSIN

Effective Date:

Approval Date: 31