The Family Opportunity Act of 2000 (S. 2274) is slated to receive $25 million the first year and $150 million over five years, the senators said. The Senate is scheduled to take up the budget resolution conference report later today. The budget resolution is a $1.8 trillion blueprint for federal spending in the next fiscal year.
"This is a down payment on our bill," Grassley said. "It shows support for our simple idea, which is helping parents provide for their special needs children. Right now, the government forces these parents to choose between family income and their children's health care. That's a terrible choice, but we'll fix it."
Kennedy said, "Disabled children and their families across the country deserve help in achieving their dreams of participating fully in the social and economic mainstream of our country. This is a giant step in that direction."
The senators explained that families with children who have special health care needs must strictly limit their income to qualify their children for both Medicaid and federal disability benefits. This means parents often refuse jobs, pay raises and overtime just to preserve access to Medicaid for their child with special health care needs.
In the worst cases, parents give up custody of their child with special health care needs or put their child in an out-of-home placement just to keep their child's access to Medicaid-covered services.
Grassley and Kennedy said Medicaid is critical to the well-being of children with multiple medical needs. It covers a lot of services that these children need, such as physical therapy and medical equipment. Private health plans often are much more limited in what they cover. Many parents can't afford needed services or multiple co-payments out-of-pocket.
The Family Opportunity Act of 2000 would create a state option to allow working parents who have a child with special health needs to keep working and to still have access to Medicaid for their child. Parents would pay for Medicaid coverage on a sliding scale. No one would have to become impoverished or stay impoverished to secure Medicaid for a child.
The bill also establishes family-to-family health information centers. These centers would be staffed by actual parents of children with special needs as well as professionals. They would provide information to families trying to arrange health services for their children.
The Family Opportunity Act of 2000 is modeled after last year's successful Work Incentives Improvement Act sponsored by Kennedy, with Grassley as a co-sponsor. Under that law, adults with disabilities can return to work and not risk losing their health care coverage.
Other original co-sponsors are Sen. James Jeffords (R-Vt.), Sen. Tom Harkin (D-Iowa), Sen. Daniel Patrick Moynihan (D-N.Y.) and Sen. Jack Reed (D-R.I.).