Options for Premium Assistance Programs: Making Medicaid Work for the 21st Century Issue Brief

This November 2004 issue brief on Premium Assistance, a strategy in which a state uses public funds (e.g.,Medicaid dollars) to pay for a portion of the cost of private coverage (usually employer-sponsored insurance). Current use of premium assistance by states is minimal; only about one-third operate such programs, and recent reports indicate that enrollment in these programs is modest in most of these states. Nonetheless, state interest remains high due to the potential benefits.