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Source: John Holahan and Mary Beth Pohl, States as Innovators in Low-Income Health Coverage (The UrbanInstitute, June 2002, Table 1), available at http://www.urban.org/url.cfm?ID=310519, accessed February 10,2005.* In Texas, the Medicaid eligibility level for parents with dependent children is $188 per month for a family of three($308 per month if one parent is working). This is a fixed dollar cap that does not increase with inflation orchange in the federal poverty level. It was last increased by the Texas Legislature in 1985. In 2005, thisincome cap equals a cut-off level of 14 percent FPL for a family of three (23 percent if one parent works).[Source: Anne Dunkelberg, e-mail to Kristie Kimbell, March 24, 2005.]Notes on table: “SF” means state-funded (all state funds, no federal funds used like in Medicaid and SCHIP). Thefour groups above are designations by the authors dividing the states into groups from most innovative (groupI—highest eligibility levels) to least innovative (group IV—have not expanded coverage beyond minimumrequirements for public programs or have not eliminated the 100-hour rule). The mandatory “100-hour rule”was eliminated by the U.S. Department of Health and Human Services in 1998, allowing states to change familycomposition rules to expand coverage regardless of the employment status of the parents; previously, twoparentfamilies could be eligible for Medicaid only if the primary wage earner worked fewer than 100 hours permonth or was incapacitated.B-47