>
>"HHS Proposes $1.75 Billion for Community-Based Living"
>
>TO:  DISABILITY RIGHTS AND ADVOCACY LEADERS
>
>FROM:  TROY R. JUSTESEN
>       ASSOCIATE DIRECTOR FOR DOMESTIC POLICY
>       THE WHITE HOUSE
>       [log in to unmask]
>
>Today, the Department of Health and Human Services
>announced that President Bush will propose a new $1.75
>billion dollar five-year program to assist people with
>disabilities living in institutions to transition to
>communities of their choice.  Below is a copy of the press
>release that describes the President's commitment to
>realizing implementation of the Supreme Court's Olmstead
>decision through the New Freedom Initiative.
>
>This proposal is one of several new efforts to be included
>in the fiscal year 2004 budget for the President's New
>Freedom Initiative to promote the full participation of
>people with disabilities in all areas of society by
>increasing access to assistive and universally designed
>technologies, expanding educational and employment
>opportunities, and promoting full access to community
>life.  The President's FY 2004 budget request moves us
>further to realizing the potential of the New Freedom
>Initiative.
>
>[The HHS press release follows.]
>
>======================
>
>U.S. Department of Health and Human Services
>HHS News
>www.hhs.gov/news
>
>FOR IMMEDIATE RELEASE
>Thursday, Jan. 23, 2003
>
>Contact:  HHS Press Office
>(202) 690-6343
>
>PRESIDENT WILL PROPOSE $1.75 BILLION PROGRAM
>TO HELP TRANSITION AMERICANS WITH DISABILITIES
>FROM INSTITUTIONS TO COMMUNITY LIVING
>
>In his budget next month, President Bush will propose a new
>$1.75 billion, five-year program to help Americans with
>disabilities transition from nursing homes or other
>institutions to living in the community.
>
>The proposal is one of several new efforts to be included
>in the FY 2004 budget for the President's New Freedom
>Initiative, a nationwide effort to integrate people with
>disabilities more fully into society.  Altogether, the
>President's New Freedom budget proposals will represent
>$2.1 billion in planned new spending over five years, with
>$417 million in new spending proposed for FY 2004.
>
>The proposals build on recommendations made to the
>President last year in "Delivering on the Promise," a
>comprehensive survey of federal policies and rules that may
>impede community living for those with disabilities.
>
>"The New Freedom Initiative was one of the earliest actions
>announced by the President in his first days in office,"
>said HHS Secretary Tommy G. Thompson. "The President and I
>are committed to changing policies that unnecessarily
>confine people with disabilities in institutional settings.
>We want to work with the states and the disability
>community to change old programs and develop new ones that
>will serve people with disabilities in the settings that
>work best for them."
>
>Proposals in the FY 2004 budget will include:
>
>* "Money Follows the Individual" Rebalancing Demonstration
>--  $1.75 billion over five years, with $350 million
>proposed for FY 2004.  This five-year demonstration would
>assist states in developing and implementing a strategy to
>"re-balance" their long term care systems so that there are
>more cost-effective choices between institutional and
>community options, including financing Medicaid services
>for individuals who transition from institutions to the
>community.  Federal grant funds would pay the full cost of
>home and community-based waiver services for one year,
>after which the participating states would agree to
>continue care at the regular Medicaid matching rate.  This
>significant demonstration would build upon existing state
>success stories in Texas, Wisconsin, Michigan and
>Washington.  It also provides incentives to states for
>increased use of home and community-based services and
>would help provide information on costs of different
>approaches.
>
>* New Freedom Initiative Demonstrations --  $220 million
>over five years, with $11 million proposed for FY 2004.
>This initiative would fund four demonstrations that promote
>home and community-based care alternatives.  Two of the
>demonstrations provide respite care services for caregivers
>of adults with disabilities or long-term illness and
>children with substantial disabilities.  Another
>demonstration provides community-based care alternatives
>for children who are currently residing in psychiatric
>residential treatment facilities.  The President proposed
>these demonstrations for FY 2003, but it is not expected
>that Congress will include this in its final FY 2003
>appropriations.
>
>* Spousal Exemption --  $95 million over five years, with
>$16 million proposed for FY 2004.  This proposal would
>continue Medicaid eligibility for spouses of disabled
>individuals who return to work.  Under current law,
>individuals with disabilities might be discouraged from
>returning to work because the income they earn could
>jeopardize their spouse's Medicaid eligibility.  This
>proposal would extend to the spouse the same Medicaid
>coverage protection now offered to the disabled worker.
>
>The budget will also propose to establish a new state
>option enabling Medicaid presumptive eligibility for
>institutionally qualified individuals who are discharged
>from hospitals into the community.  This would make it more
>feasible to discharge a person who has been hospitalized to
>the community, rather than to an alternative institutional
>setting, or to ensure that the institutional placement is
>of short duration.
>
>Expanding on an existing effort, the FY 2004 budget will
>also include $40 million for "Systems Change Grants" to
>support states in their planning to create new systems to
>support people with disabilities in the community instead
>of in institutions.
>
>In addition to the "Systems Change Grants," HHS has worked
>with 40 states and the District of Columbia to design and
>implement Ticket-to-Work provisions.  And last year HHS
>offered an "Independence Plus" waiver template to help
>states develop consumer directed services.
>
>Last year, the President named his New Freedom Commission
>on Mental Health, and charged it with conducting a
>comprehensive study of the United States mental health
>service delivery system, including both private and public
>sector providers, and advising him on methods of improving
>the system.  Secretary Thompson also created a new Office
>on Disability within HHS in 2002 to coordinate activities
>across the Department and serve as a focused contact point
>for disability issues.
>
>"Improving our programs for people with disabilities,
>including the need to tackle the institutional bias in some
>programs, is a daunting task," Secretary Thompson said.
>"It will require sustained effort over many years.  We've
>made a start with the most comprehensive survey ever taken
>of problems and opportunities in federal programs, as well
>as new structures to support our efforts.  The President's
>budget proposals will take us to the next level, with
>substantial demonstration activities and more help for
>Americans with disabilities to enter and stay in the
>workforce."
>
>Note: All HHS press releases, fact sheets and other press
>materials are available at www.hhs.gov/news
>
># # #
>
>=====================
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