Well, well. :-)

This contains important nfo

S.



----- Original Message -----



  To:  MiCASSA folks

  This is a direct result of the ADAPT action at the White House that
 resulted
  in the October 27th meeting with President Clinton.

  "Direct Action" works!

  Subject: News Update: HHS Proposal to Expand Medicaid

  HCFA Press Release
  Friday, October 27, 2000

  [To access the regulation, visit NHeLP's website at
  http://www.healthlaw.org and look for the alert in the What's New
  section]

  HHS PROPOSES CHANGES ALLOWING STATES TO EXPAND
  MEDICAID COVERAGE

  The U.S. Department of Health and Human Services today
  announced it is proposing new rules to help enable more low-
  income Americans gain Medicaid coverage.  The change, which
  would allow states greater flexibility in determining Medicaid
  eligibility, could potentially benefit tens of thousands of
  Americans.  In particular, it could help the elderly, people with
  disabilities and families with disabled children to obtain Medicaid
  coverage while living at home, instead of having to live in nursing
  care facilities.

  The proposed change addresses problems created by existing
  rules that limit Medicaid eligibility for certain individuals to
  outdated, extremely low income levels that were used in the old
  Aid to Families with Dependent Children (AFDC) program, prior to
  welfare reform.  The proposal is aimed at assisting those whose
  income is slightly above traditional Medicaid income limits, but who
  are strapped with overwhelming medical bills.

  Under current "medically needy" rules, a state can offer Medicaid
  coverage to such persons once they have spent so much of their
  income on medical bills that what is left over meets the states'
  medically needy income standard.  In more than 40% of the states,
  however, that standard is significantly below the poverty level.
  Under the proposed rule, a state could disregard portions of a
  person's income, such as the income necessary to pay for food,
  clothing or housing.

  The proposed rule is of special significance for the elderly and
  people with disabilities.  Under current rules, people in institutions
  can qualify for Medicaid coverage at much higher income levels
  than if they lived in the community.  This "institutional bias" acts
as
  a barrier to living in the community for many persons with
  disabilities.  The proposed change would allow states the flexibility
  to change their own rules so that elderly or people with a disability
  would not have to lose their health coverage if they move into a
  community setting.

  "This proposal has important potential to open doors to community
  living for thousands of Americans who are able to live at home and
  do not want to be confined in nursing homes," said HHS Secretary
  Donna E. Shalala.  "It can enable people to obtain the services
  they need to live in their own home despite a chronic illness or
  disability, and lead fuller lives of their own choosing."

  The proposed change could also be used by states to help low-
  income people who have a disability to participate in the workforce,
  by allowing states to disregard certain earnings or other sources of
  income and still retain vital health coverage under Medicaid.  For
  example, a state might disregard income from a savings account
  used by a worker to save funds for the purchase of a home,
  automobile, or similar items that promote independence.

  The proposed regulation could also allow states to provide health
  coverage to additional families and children who cannot be covered
  under existing rules.  For example, states would have the flexibility
  to offer health insurance coverage under Medicaid to young adults
  ages 19 and 20 who are still in school or just beginning
  employment.

  "This change could permit elderly and others to retain enough
  income to meet life's basic living expenses and still get help with
  their catastrophic medical bills," said Mike Hash, acting
  administrator of HHS' Health Care Financing Administration, which
  administers the Medicare and Medicaid programs.  "We propose
  this as an important and meaningful change for states that already
  provide critical health coverage under Medicaid to millions of
  Americans."

  New federal spending under the proposed regulation is estimated at
  $960 million over five years.  States would also spend a similar
  additional amount over that period.

  The proposed regulation will be published in the Federal Register
  next week.

  Note:  For other HHS Press Releases and Fact Sheets pertaining
  to the subject of this announcement, please visit the Press
  Release and Fact Sheet search engine at:
  http://www.hhs.gov/search/press.html.

  The regs were published in today's Federal Register and can be
  accessed from NHeLP's website at http://www.healthlaw.org.