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1982

The Tax Equity and Fiscal Responsibility Act (TEFRA) allowed states to cover home care services under Medicaid for children with disabilities, even when family income and resources exceeded the under Medicaid for children with disabilities, even when family income and resources exceeded the state's financial eligibility standards.

1986

Amendments to the Rehabilitation Act required states to show that policies exist regarding the order in which individuals are selected to receive services ("order of selection" process) and to justify those policies; include in the state plan a plan for youth transition to employment; and reflect how the supported employment program would be implemented in the state. The definition of "severe handicap" was amended to include both functional and categorical criteria, and a definition of ''employability'' was added.

1986

The Employment Opportunities for Disabled Americans Act made permanent the work incentives pro- visions, Sections 1619(a) and 1619(b), of the Social Security Act. These provisions authorize special SSI benefits and continued Medicaid coverage for people with disabilities who are working, but whose income exceeds ''substantial gainful activity" levels. Medicaid coverage is extended to people with disabilities who may lose SSI or Section 1619(a) benefits due to excess earnings, but who are unable to afford health care coverage that is equivalent to coverage under Medicaid.