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Federal regulations provide, in pertinent part, that:
(b) A state
plan must—
(1) Specify a single State agency
established or designated to administer or supervise the administration of
the plan; and
(2) Include a certification by the State
Attorney General, citing the legal authority for the single State agency to—
(i) Administer or supervise the
administration of the plan; and
(ii) Make rules and regulations that it
follows in administering the plan or that are binding upon local agencies
that administer the plan.
(c) Determination
of eligibility.
(1) The plan must specify whether the
agency that determines eligibility for families and for individuals under 21
is—
(i) The Medicaid agency; or
(ii) The single State agency for the
financial assistance program under Title IV-A (in the 50 States or the District
of Columbia).
(2) The plan must specify whether the
agency that determines eligibility for the aged, blind, or disabled is—
(i) The Medicaid agency;
(ii) The single State agency for the
financial assistance program under Title IV-A (in the 50 States or the District
of Columbia); or
(iii) The Federal agency administering the
supplemental security income program under Title XVI (SSI). In this case, the plan must also specify
whether the Medicaid agency or the Title IV-A agency determines eligibility
for any groups whose eligibility is not determined by the Federal agency.
(e) Authority of the single State
agency. In order for an agency to
qualify as the Medicaid agency—
(1) The agency must not delegate, to other
than its own officials, authority to—
(i) Exercise administrative discretion in
the administration or supervision of the plan, or
(ii) Issue policies, rules, and regulations
on program matters.
(2) The authority of the agency must not
be impaired if any of its rules, regulations, or decisions are subject to
review, clearance, or similar action by other offices or agencies of the
State.
(3) If other State or local agencies or
offices perform services for the Medicaid agency, they must not have the
authority to change or disapprove any administrative decision of that agency,
or otherwise substitute their judgment for that of the Medicaid agency with
respect to the application of policies, rules, and regulations issued by the
Medicaid agency.
(42 Code of Federal Regulations §431.10)
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