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1993.12.09 : Kentucky Medicaid Demonstration Project

Contact: Anne Verano 
Thursday, Dec. 9, 1993                            (202) 690-6145

HHS Secretary Donna E. Shalala has announced approval of
Kentucky's state demonstration project designed to increase access
to health care coverage for the Medicaid and uninsured
populations.

"The new spirit of cooperation between the states and the federal
government is resulting in innovative systems to deliver high
quality, cost-effective care to our neediest citizens," said
Secretary Shalala.

The Kentucky Medicaid Access and Cost Containment Demonstration is
a five-year project that will provide care for 200,000 new
enrollees by the end of the third year of the demonstration.
The program will expand health coverage to all persons within 100
percent of the federal poverty level.  Children under age 6 will
continue to be eligible if the family income is less than 133
percent of the federal poverty level.  The demonstration also
eliminates the asset test from the eligibility determination.
"Approval of this project reflects the administration's commitment
to the states by allowing them the flexibility to provide improved
access to care for the uninsured, as well as holding down health
care costs," said Bruce C. Vladeck, administrator of the Health
Care Financing Administration.

Participation in the Kentucky demonstration is expected to be
phased in over a three-year period.  The state projects total 
federal savings of $768.5 million over the life of the
demonstration.

All individuals who are eligible for the program will be enrolled in
a managed care program similar to the state's Primary Care Case
Management (KenPAC) program.

The benefit package to be provided to new Medicaid-eligible
individuals is the same as is currently provided in the state's
Medicaid program.

The Health Care Financing Administration is the federal agency which
administers the Medicaid and Medicare programs that help pay the
medical bills of 67 million Americans.  HCFA's estimated fiscal year
1994 expenditures will total more than $250 billion.