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Katie Beckett Waiver (TEFRA)

Benefits/Waivers

§ 01 — Definition

The Katie Beckett waiver, also known as TEFRA (Tax Equity and Fiscal Responsibility Act) option, allows children with significant disabilities to qualify for Medicaid based on their own medical needs and income — not their parents' income. Named after Katie Beckett, a ventilator-dependent child whose family fought for her right to receive care at home instead of in a hospital, this program recognizes that some children need an institutional level of care but are better served at home. States implement Katie Beckett differently: some use it as a Medicaid eligibility pathway (TEFRA option), others as a separate waiver program. Benefits typically include full Medicaid coverage for medical, therapeutic, and sometimes HCBS services without counting family income or assets.

§ 02 — Why it matters for benefits

Katie Beckett is often the fastest path to Medicaid for middle-income families with disabled children. The Compass Quiz checks whether your state offers Katie Beckett and guides your application.

§ 03 — Related