Sebelius outlines state flexibility and federal support available for Medicaid

Secretary of the Department of Health and Human Services, Kathleen Sebelius, sent a letter this week to governors outlining the resources available to states looking to make Medicaid programs more efficient while still battling pressing health care needs and a difficult budget climate. HealthReformGPS.org reports that the letter “outlines specific areas where States can reduce Medicaid costs, including effective care management of high-cost enrollees and ensuring robust program integrity efforts, among others.”

The letter lists the following key areas of potential cost savings in managing Medicaid:

  • Modifying Benefits. …
  • Managing Care for High-Cost Enrollees More Effectively.  … 
  • Purchasing Drugs More Efficiently.  …
  • Assuring Program Integrity.  …

Secretary Sebelius further stated that, in an effort to expedite cost-saving measures, the Department will “host a series of ‘virtual’ meetings with State health policy advisors and Medicaid directors.” In these sessions, attendees will learn about promising Medicaid cost-saving programs being used in one or more States. Specifically, the department will share information regarding initiatives that it is prepared to “support and approve in other States on a fast-track basis.” 

To read the detailed descriptions of the above-listed potential cost savings areas and to view the full letter, click here. The letter includes an attachment that further details Medicaid cost-saving opportunities.

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