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Can Medicaid be terminated or suspended if a state attempts to withhold Title IV-E adoption assistance payments while a child is in a Residential Treatment Facility?

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Can Medicaid be terminated or suspended if a state attempts to withhold Title IV-E adoption assistance payments while a child is in a Residential Treatment Facility?

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No, Medicaid cannot be terminated or suspended if a state attempts to withhold Title IV-E adoption assistance payments while a child is in a Residential Treatment Facility. Title IV-E adoption assistance can be terminated only under three conditions. (See Question #7 above.) Title IV-E adoption assistance cannot be terminated, suspended, or discontinued for any other reason. Withholding adoption assistance payments due solely to a temporary placement outside the home, as in the circumstance of an RTF placement, is impermissible. As long as a parent continues to provide any support to the child, the child remains eligible for Title IV-E adoption assistance and, is, therefore, Medicaid eligible. *Note: Support can be other than financial, such as providing items of clothing or maintenance of the child’s room in the home. Cite: 42 U.S.C. §673 (a)(4).

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