HHS releases state flexibility initiatives for Medicaid

By Julian Pecquet - 04/14/11 12:10 PM ET

The Department of Health and Human Services announced four new initiatives on Thursday that it says will provide states more flexibility to run their Medicaid programs.

The announcement follows up on President Obama's promise to give states more flexibility without turning the state-federal Medicaid entitlement into a block grant, as proposed by House Budget Committee Chairman Paul Ryan (R-Wis.).

"Medicaid programs provide health coverage for millions of low-income Americans who otherwise would lack access to health care," HHS Secretary Kathleen Sebelius said in a statement. "With these new resources and flexibilities, states will have new options to make their Medicaid programs work better for the people they serve, while helping lower their costs."

The new initiatives include:

• Coordinated Care for dual eligibles enrolled in both Medicare and Medicaid. 15 states will get up to $1 million through a new office for dual eligibles created by the healthcare reform law to coordinate primary, acute, behavioral and long-term care, expand access, eliminate duplication of services and lower costs. The 15 states are California, Colorado, Connecticut, Massachusetts, Michigan, Minnesota, New York, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Vermont, Washington and Wisconsin.

• Easier access to home care. Proposed regulations aim to give states more flexibility to allow Medicaid recipients to stay in their homes and communities rather than institutions such as nursing homes. The regulations would also allow individuals to participate in designing their home care benefit, such as personal care and respite services for caregivers.

• More money for Medicaid and CHIP enrollment. New rules issued Thursday increases to 90 percent the federal share for states to revamp their IT systems to help people enroll in Medicaid and the Children’s Health Insurance Program. The rules also establish performance standards to make the system more efficient and easier to use.

• Expanded coverage for New Jersey. The Garden State's request to expand health coverage to 70,000 low-income residents through its Work First New Jersey program has been approved.