HHS-Provides Guidance on State Flexibility in Medicaid

In response to states’ pervasive budget deficits and the related challenges of managing costly Medicaid programs, Department of Health and Human Services (HHS) Secretary Kathleen Sebelius sent a letter to governors outlining areas where states have flexibility to address rising costs.

The February 3 letter and a corresponding report outlined four areas where states have existing flexibility in the Medicaid program and as well as new options available under the Affordable Care Act (ACA). The areas fall into four broad categories: cost-sharing and benefits; managing care for high cost enrollees more effectively; purchasing drugs more efficiently; and assuring program integrity.

To read the report click here.