States Using New Federal Medicaid Rule To Expand, Restrict Benefits

April 17, 2007 – 10:40 am | posted in Medicare

Medicaid is “being redefined throughout the country” because of new federal rules that provide states with more flexibility to administer benefits under their Medicaid programs, the Washington Times reports. Under the new rules, states “have the ability to take their Medicaid programs from a one-size-fits-all system to a customized format that offers specific benefits to certain populations based on age and health conditions,” according to the Times. Four states — Idaho, Kentucky, Missouri and West Virginia — have used the new rules to group beneficiaries from traditional Medicaid into benefits packages based on eligibility requirements. According to the Times, supporters maintain the new rules will allow the state Medicaid programs to “target medical services to the neediest populations,” but opponents “warn the new flexibility will undo Medicaid” because of the disparity in benefits among states. Rachel Klein, deputy director of health policy at Families USA, said, “The new federal rules call into question the meaning of health coverage. Will people be able to get health coverage when they need it?” Meanwhile, unexpected revenue increases in 2006 prompted 15 states to expand Medicaid eligibility to additional residents, and several states have considered health insurance proposals that involve expansions of the program. Diane Rowland, executive vice president of the Kaiser Family Foundation, said, “States that are using Medicaid to broaden health care coverage are using it as a foundation to build upon for low-income people, which frees up other ways to make insurance more affordable” (Lopes, Washington Times, 4/12).

“Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

ShareThis

Also Read

CMS Proposes Rule Changes That Would Give States ‘Unprecedented Flexibility’ In Designing Medicaid Programs

Community Pharmacies Raise Concerns About New Medicaid Reimbursement Rule

CMS Proposes Medicaid Changes That Would Give States ‘Unprecedented Flexibility’

Proposed Medicaid Rule Would Reduce Payments For Prescription Drugs, Redefine Average Manufacture Price

Newspaper Examines Proposals To Reduce Medicaid Reimbursements

Senate Approves Amendments To Indian Health Care Improvement Act Reauthorization Bill

Pharmacies Fighting President Bush Proposal To Reduce Reimbursements For Generic Prescription Drugs Under Medicaid

State Medicaid Directors, Organizations To Call For Delay To Medicaid Rule That Would Require Physicians To Use Tamper-Resistant Paper

New Federal Requirements For New Hampshire Healthy Kids Program Reduces Applications By Half

AP/Washington Times Examines Effects Of New Rule On Medicare Hospital Reimbursements For Preventable Conditions