This is an archive page. The links are no longer being updated.

Date: Wednesday, May 17, 1995
FOR IMMEDIATE RELEASE
Contact:  HCFA Press Office (202) 690-6145

Approval of Delaware Medicaid Demonstration

HHS Secretary Donna E. Shalala today announced approval of Delaware's statewide health care demonstration project, the Diamond State Health Plan. Delaware will expand its Medicaid program to provide comprehensive health coverage to 8,000 poor adults and children not previously covered by Medicaid and with incomes up to 100 percent of the federal poverty level. The state will finance the expansion using savings from enrollment in managed care.

Through this demonstration, Delaware seeks to improve and expand access to health care to more adults and children throughout the state, create a managed care delivery system which emphasizes primary care, and control the growth of health care expenditures for the Medicaid population.

Secretary Shalala stated, "The approval of this demonstration illustrates the administration's commitment to working with states to implement innovative ideas and to ensure that our neediest citizens have access to health care. Governor Tom Carper is to be commended for his leadership."

All AFDC, AFDC-related and SSI Medicaid recipients will be eligible for the program with the exception of those receiving long-term care in institutional or home and community-based settings and those who are eligible for Medicare. Medicaid recipients not eligible for the Diamond State Health Plan will remain in the state's fee-for-service Medicaid program. Delaware expects approximately 63,000 individuals to be enrolled in DSHP by the end of the demonstration 8,000 of whom will be new enrollees.

The Diamond State Health Plan, which will go into effect in October 1995 and continue through the year 2000, will offer a basic benefit package including medical and mental health services. Delaware will incorporate its current managed care program, the Nemours CHILD Plan, as well as the state's case managed program for adults receiving general assistance, into the Diamond State Health Plan. Certain optional Medicaid services will continue to be reimbursed under the state's fee-for-service program for categorical eligibles.

Bruce C. Vladeck, administrator of the Health Care Financing Administration, said that "DSHP will provide comprehensive health care to Delaware's most vulnerable citizens. Our collaboration with the state should provide significant new benefits for many of its citizens."

Mental health services exceeding those provided in the basic benefit package will be delivered by the appropriate state agencies and will be reimbursed on a fee-for-service basis. By the end of the demonstration, the state intends to create a single mental health system that will provide services on a capitated basis.

Since January 1993, HHS has approved 10 comprehensive health care reform demonstration projects, and 25 targeted Medicaid demonstrations. The administration has also approved welfare reform demonstrations in 28 states.

###