Title IV-E Foster Care Payments

When a child in DFPS conservatorship who is eligible for Title IV-E is placed in another state and DFPS continues to pay for the child’s foster care with Title IV-E funds the following are true:

• The receiving state becomes responsible for providing the child’s Medicaid benefits.
• DFPS provides the receiving state with information about the child’s eligibility to receive Medicaid through Title IV-E.

DFPS Rules, 40 TAC §700.345External Link

After the receiving state approves the child’s placement and the child has been placed, the following steps are taken to arrange for the receiving state to provide the child’s Medicaid coverage:

• The caseworker completes the Interstate Compact Placement Status Report (Form ICPC 100-B) in IMPACT no later than seven business days after the child is placed.
• The caseworker submits Form 100-B to his or her supervisor for approval.
• After the supervisor approves Form 100-B, it is assigned by the caseworker through IMPACT to the regional ICPC coordinator and then to the Texas Interstate Compact Office (TICO).
• TICO prints out Form ICPC 100-B from IMPACT and sends it to the receiving state’s Interstate Compact for the Placement of Children (ICPC) office.
• The caseworker notifies the foster care eligibility specialist that the child has been placed and that the receiving state will be providing Medicaid coverage.
• The eligibility specialist changes the child’s Medicaid type to None in IMPACT, which allows DFPS to continue making Title IV-E payments to the child’s caregiver but ends the child’s DFPS foster care Medicaid.

No Title IV-E Foster Care Payments

When Title IV-E payments will not be made while a child in DFPS conservatorship is placed in another state, DFPS continues to provide both Medicaid benefits and foster care payments, as applicable.

DFPS Rules, 40 TAC §700.345External Link

DFPS will continue to provide Medicaid for children placed in another state until the child receives Medicaid from the receiving state. The Medicaid is based on Texas Medicaid rates, and the medical provider must apply and be approved as a Texas Medicaid provider. The caregiver may need to apply for Medicaid on behalf of the child in the receiving state. Some states will not approve Medicaid if the child is in the custody of another state.

State-Paid Foster Care

If DFPS is paying for the foster care of a child who is eligible for state-paid care, the foster care eligibility specialist records the child’s selected eligibility as State-Paid in IMPACT.

MAO Foster Care

If DFPS is not making foster care payments, the foster care eligibility specialist changes the child’s selected eligibility to Medical Assistance Only (MAO)in IMPACT. This applies to children who are eligible for both Title IV-E and state-paid care.

Ending the Child’s Eligibility

The eligibility specialist ends the child’s eligibility for DFPS foster care Medicaid or equivalent coverage in IMPACT only if either of the following occur:

• The specialist is later notified that the child is receiving Medicaid in the receiving state.
• The legal responsibility of DFPS is terminated.

See 4510 Placing Children Outside of Texas.