Military Families Won't Lose Their Spot on Medicaid Waitlists After Relocation, Starting 2028

The “Care for Military Kids Act” tackles a major headache for active duty military families: losing critical healthcare benefits and waitlist positions every time they get relocation orders. Starting January 1, 2028, this bill mandates that if an active duty service member or their dependent moves to a new state for service, that new state generally has to treat them as a resident for Medicaid eligibility purposes. This is a big deal because it means coverage continuity is the default, removing a massive administrative hurdle for families constantly uprooting their lives.

The Waiting List Lifeline

The most significant change here targets Home and Community-Based Services (HCBS), which are essential long-term care services often provided through Medicaid waivers. Right now, if a military family is on a years-long waiting list for specialized care—say, for a child with complex medical needs—and they get orders to move, they usually lose their spot and have to start over in the new state. This bill puts a stop to that.

Under the new rules (SEC. 2), if you were receiving HCBS benefits or were on a state’s waiting list for those services when you moved, the new state must honor that waitlist status. You stay in line until the new state completes its assessment and determines eligibility. This protection applies to the service member, their spouse, and their children. Think of it like a time-share for your place in line: you get to carry that seniority with you, ensuring that a forced move doesn't mean starting from scratch on a waitlist that could determine your family's quality of life.

Who This Helps and Why It Matters

This legislation is a direct win for military families struggling with the constant uncertainty of relocation. For a parent of a dependent requiring intensive long-term support, the fear of losing HCBS access—which can cover everything from in-home nursing to specialized therapies—is immense. This bill removes that cliff edge. It also applies to recently discharged service members and their families (within 12 months) whose move was triggered by active duty service just before separation, recognizing that the transition period is often just as stressful.

To help the federal government roll this out and coordinate with states, Congress has set aside $1 million annually between 2026 and 2030. States that need to change their laws to comply with the new Medicaid residency rules get a little breathing room: they won't be penalized until after their next legislative session ends, giving them time to update their systems before the 2028 deadline hits. This acknowledges the reality that legislative bodies move slowly and need time to catch up.

The Trade-Offs for States

While this is a clear benefit for military families, state Medicaid agencies are the ones absorbing the cost and administrative burden. When a military family moves in, the new state is immediately responsible for their Medicaid coverage and honoring their waitlist status. This means a potential increase in enrollment and service costs for the receiving state. Furthermore, while the bill solves the problem for military families, it does mean that in states with capped HCBS programs, the waitlist spot reserved for the incoming military family is a spot that someone already residing in the state might have otherwise moved into sooner. It’s a necessary trade-off to support those who serve, but it highlights how policy changes in one area can create slight ripple effects in another.