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"Now, many people in Pennsylvania will be able to return to work without fear of losing access to medical care for a serious disabling condition," Secretary Thompson said. "President Bush and I are committed to knocking down barriers so that all Americans with disabilities can participate more fully in community life."

With today's approval, the state will offer Medicaid to anyone with a disability between the ages of 16 and 64 with family income up to 250 percent of the federal poverty level (FPL), and with resources up to $10,000. Persons eligible with family income above 100 percent of the FPL will pay a premium based on a sliding fee scale. The FPL for 2002 is $8,860 for an individual.

Pennsylvania officials expect around 3,000 people to enroll in Medicaid as a result of this change during the first year and about 10,000 during a three-year period.

The change supports the goals of President Bush's New Freedom Initiative, a government-wide framework for helping provide people with disabilities with the tools they need to fully access and participate in their communities.

Pennsylvania is able to make the change in part due to grants from HHS' Centers for Medicare & Medicaid Services (CMS) under the Ticket to Work and Work Incentives Improvement Act of 1999, which gives states greater flexibility to assist workers with disabilities under the Medicaid program. Pennsylvania received $500,000 in grant funding that directly assisted in the state's efforts to implement this change.

"Today's approval will further enable those with a disability to work in a competitive environment," CMS Administrator Tom Scully said. "Keeping people in the workplace is the goal of this landmark legislation."

Since taking office, Secretary Thompson has worked to improve access to health care through innovative coverage programs in Medicaid and the State Children's Health Insurance Program. Since January 2001, HHS has approved waivers and plan amendments that have expanded eligibility to about 1.8 million people and enhanced benefits for about 4.5 million people.

Medicaid is a state-federal partnership that pays for health and long-term care services to certain low-income individuals, including children, the elderly and people with disabilities. States and the federal government share the cost of the program, and each state administers its Medicaid program.

More information about President Bush's New Freedom Initiative is available at www.hhs.gov/newfreedom/. Information about HHS' ongoing efforts to implement the Ticket to Work and Work Incentives Improvement Act is available at cms.hhs.gov/twwiia/default.asp.

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