On April 9, the federal Centers for Medicare and Medicaid Services (CMS) sent a letter to state health officials and Medicaid directors outlining states' options for implementation of new Medicaid eligibility requirements.  The letter explains how states may implement section 2001 of the Patient Protection and Affordable Care Act, which establishes federally funded Medicaid coverage for the lowest income populations, regardless of disability, parental status, and most other categorical limitations.  States must cover the population established by section 2001 by January 1, 2014, but may begin to phase in coverage starting on April 1, 2010.  

From the letter: Under section 1902(k)(2) of the Act, until 2014, States may elect to “phase-in” coverage for this new eligibility group at any time, effective April 1, 2010. This means that States do not have to wait until January 2014 to cover adults they have previously had no authority to cover under a State plan, including adults under age 65 who are neither disabled, pregnant, nor living with dependent children and who do not have other special circumstances. Depending on the categories and income levels a State now covers and the income level a State decides to set for the new group under the 1902(k)(2) option, the new group also could include other low-income adults, including parents and individuals with disabilities who do not receive SSI.  

Full letter:  New Option for Coverage of Individuals under Medicaid (PDF | 37.65 KB)

Centers for Medicare and Medicaid Services.  (2010).  New options for coverage of individuals under Medicaid.