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On February 8, 2006 the President signed the Deficit Reduction Act of 2005 (DRA). This sweeping legislation affects many aspects of domestic entitlement programs, including both Medicare and Medicaid.

The DRA provides states with much of the flexibility states have been seeking over the years to make significant reforms to their Medicaid programs. Combined with other options in Medicaid, states will be able to reconnect their healthy populations to the larger health insurance system, transform long-term care from an institutionally-based, provide-driven system to a person-centered and consumer-controlled model. There are great opportunities for covering more people at a lower cost, and with greater continuity of coverage.



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Page Last Modified: 01/13/2009 1:48:57 PM
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