Health insurance is an important support for individuals
receiving, leaving or diverted from the Temporary Assistance for Needy Families (TANF) welfare
or cash assistance program for low-income families. Medicaid and SCHIP (State Children's Health
Insurance Program) are key vehicles for providing such coverage. While there is no formal link
between TANF and either Medicaid or SCHIP, some TANF-eligibles, especially children, are likely
to qualify for one of these programs. But state eligibility rules can be complex and often differ for
parents versus children, leaving some parents, in particular, without coverage. Finally, six to 12
months of transitional medical assistance (TMA) for families losing Medicaid coverage for
work-related reasons expired on December 31, 2005, but was reinstated retroactively to this date,
and extended through 2006 under the Deficit Reduction Act of 2005 (P.L. 109-171).