Rhode Island Governor Donald L. Carcieri has announced in a press release that the RI Department of Human Services (DHS) and the federal Centers for Medicare and Medicaid Services (CMS) have reached an agreement on Medicaid reform for Rhode Island. The accord (also known as a "Rhode Island Global Compact Waiver") will be delivered to the Rhode Island legislature, which will have 30 days for review and comment.

"This is a landmark agreement that addresses one of the nation's most pressing public policy issues," said Governor Carcieri. "Medicaid spending has increased drastically, and the current funding structure is forcing states to cut other critical programs, like education, highways and public safety or raise taxes significantly. This agreement will put us on a sustainable path for growth in Medicaid while also maintaining services for those most in need. I applaud the cooperation and hard work put forth by the federal government and our staff at DHS for making this reform possible."

Echoing the Governor's comments, Secretary Mike Leavitt, US Department of Health and Human Services said, "This demonstration will allow Rhode Island increased flexibility to adjust its Medicaid program to better serve the health care needs of the state's beneficiaries. In particular, this demonstration advances the Bush administration's efforts to provide more long-term care services in home and community-based settings."
According to the press release, the Rhode Island Global Compact Waiver establishes a "State-federal compact that provides the State with greater flexibility while assuring federal funding certainty." The state intends to use the flexibility to redesign RI's Medicaid program for more cost-effective services adaptable to the changing needs of individuals in the program. The Medicaid reform package also allows the State to bypass many of burdensome federal regulations and offer services specifically focused to meet Rhode Island's needs. The reform also assists the DHS in meeting its budget.

"The Medicaid reform plan will help us improve services for many who rely on Medicaid," added DHS Director Gary Alexander. "For example, we can do much more to keep seniors and the disabled out of institutional care and in their own homes. This will give these beneficiaries the care they prefer while saving the taxpayers of Rhode Island millions. This is an innovative approach that gives the people who are receiving care more control of their health decisions while improving the efficiency of Medicaid. We look forward to getting out to the community to explain this tremendous opportunity for our state."

The Medicaid Reform plan includes long term care and a prevention-based care system across all Medicaid beneficiaries. The emphasis on home and community-based settings such as assisted living and in-home care may enable beneficiaries to maintain a family or community-based lifestyle. Decisions on the type and setting of services will be determined in consultation with the beneficiary and the family, and the level of care needed. According to the press release, the Waiver "will implement care management instruments across populations, increasing the opportunity for more efficient monitoring of access and quality, and greater use and efficacy of performance-based payment incentives."

Adapted by a press release from the state of Rhode Island.

More Industry Headlines