Connecticut became the first state to permanently add low-income adults to its Medicaid program under the new federal health reform law.

M. Jodi Rell

“We applaud Connecticut’s speedy action to expand coverage for its lowest-income residents who will now have reliable access to affordable, quality care as a result of the incentives contained in the Affordable Care Act,” said Kathleen Sebelius, secretary of the U..S. Department of Health and Human Services, in a statement. “Today’s action will bring substantial new federal support to the state and help improve the health of its citizens.”

Connecticut Gov. M. Jodi Rell called the program expansion “tremendous news” for the state, which estimates about 45,000 residents will become eligible under the new program, approved by HHS June 21.

“For many years, Connecticut has provided state assistance to ensure that our most vulnerable single adults have access to health care,” Rell said. “Now with this federal help, we will be able to provide increased medical benefits for them through Medicaid while relieving the burden on state taxpayers.”

States can obtain federal funding for providing Medicaid coverage to adults with incomes up to 133% of the federal poverty level (FPL), or $14,400 for an individual in 2010, under the new health reform law, signed by President Barack Obama in March.

Previously, states could only cover childless adults by applying for a waiver of Medicaid rules.  These waivers were temporary and states had to meet strict criteria for approval and renewal.

The Affordable Care Act requires states to cover all low-income individuals in Medicaid starting in 2014, but it also allows states to obtain federal funding to enroll them sooner.

Prior to passage of the new health care law, many uninsured adults in Connecticut received coverage through a state-funded program, known as State-Administered General Assistance (SAGA). Connecticut will enroll individuals whose annual income is up to 56% of the federal poverty level, or $6,650 per year for an individual in 2010.

Medicaid enrollees under this coverage expansion will receive the standard Medicaid benefit package for adults, including inpatient and outpatient hospital services, physician services, laboratory services, prescription drugs, mental health services, immunizations and emergency services, officials said.

Federal officials said they are working with several other states that are considering similar coverage changes under the new law.