On May 3, 2006, Kentucky obtained a state plan amendment (SPA) for its Medicaid program, becoming one of the first states to utilize new options available through the Deficit Reduction Act of 2005 (DRA). Under the plan, the state will enroll most of its current Medicaid population into four targeted benefit plans and utilize new options to increase cost sharing and expand access to community based long-term care services. The state still needs waiver approval for some changes proposed in the plan. Through these changes, the state is seeking to “improve health status; ensure people receive the right care, in the right setting, at the right time; ensure the solvency of Kentucky Medicaid, and transform Kentucky Medicaid into a 21st Century Health Care System.” The state expects these changes to generate $1 billion in savings over the next seven years. These changes could have significant implications for beneficiaries and providers and provide an early example of how states can use the new benefit, cost sharing and home and community-based services options in the DRA.
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1 online resource (1 PDF file (2 unnumbered pages)).