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Date: October 11, 1995 
Contact:  HCFA Press Office (202) 690-6145

Kentucky Medicaid Demonstration Amendment Approved

HHS Secretary Donna E. Shalala today announced approval of an amendment to Kentucky's statewide health care demonstration project. The modified program, called The Partnership, will improve access to health care coverage for the state's 493,000 Medicaid beneficiaries through provisions for regular primary care providers, as well as innovative partnerships between the public and private sectors.

"Governor Jones is to be commended for his leadership in developing a plan to reform Kentucky's Medicaid program. Our approval of this amendment illustrates the Clinton administration's commitment to providing states the flexibility they need to design health care systems that increase access and quality of care for their citizens," said Secretary Shalala.

Under the project, Kentucky will enroll all non- institutionalized Medicaid beneficiaries into one of eight regional managed care entities, called partnerships. A partnership will be a coalition of public and private medical providers. Public providers will include local health departments and Federally Qualified Health Centers. The medical schools at the University of Kentucky and the University of Louisville will participate in the partnerships and provide them administrative and technical support, particularly in rural areas.

"This unique demonstration will test how to maximize beneficiaries' choice of provider within a managed care network," said Bruce C. Vladeck, administrator of the Health Care Financing Administration.

Each partnership will offer a standard package of Medicaid acute care benefits. Long term care and school-based services will continue to be provided outside the partnerships.

Kentucky's demonstration project was originally approved Dec. 9, 1993, and would have expanded health coverage to all persons in Kentucky with incomes below the federal poverty level. However, it was not implemented. The revised project, which will begin in July 1996 and be fully operational by 1998, will target only the Medicaid population.

Since January 1993, HHS has approved 11 comprehensive health care reform demonstration projects, and 26 targeted Medicaid demonstrations. The administration has also approved 47 welfare demonstrations for 35 states.

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