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The approval will allow the state to receive about $17 million in federal Medicaid funding to expand access to outpatient services through a regional funding authority. A portion of the funds will support the continued operation of ConnectCare as it makes a transition from an inpatient to outpatient facility. Last year, the hospital, which is located in inner-city St. Louis, performed over 52,000 outpatient visits. As part of today's agreement, the hospital will close the six inpatient beds it currently operates.

The initiative is a component of Missouri's broader health care reform demonstration, "Managed Care Plus (MC+)." The plan approved today will focus on making the St. Louis health care system cost-effective and self-sustaining. The people served by this program will be among the neediest people in St. Louis: those who are eligible for Medicaid and those who lack insurance altogether.

"By improving the delivery and coordination of outpatient care, St. Louis will be able to rely less on more costly -- and often not appropriate -- inpatient services," Secretary Thompson said. "This is a win for the low-income people served by the program, a win for fiscal prudence and accountability and a win for states' flexibility to innovate in their Medicaid programs."

A regional health authority will control expenditures under this plan. Aside from encouraging an outpatient approach to delivering care, some funds will also be used to enact the recommendations of the St. Louis Regional Health Commission, an advisory committee that will work on a long-range community plan to improve the general health status of people in St. Louis.

The Secretary also announced the approval of a state proposal to cover working disabled individuals under the Ticket to Work and Work Incentives Act of 1999.

"Coverage expansions for working disabled people not only help individuals directly, but we all benefit when people are allowed to make a valuable contribution to society using their talents and skills in the workforce," Secretary Thompson said. "For many people with disabilities keeping their Medicaid coverage is, in fact, their 'ticket to work.'"

The state will extend Medicaid coverage to working individuals with disabilities between ages16 and 64. In addition, a $500,000 Medicaid Infrastructure Grant for 2002, approved by the department last October, will be used to help design Medicaid service delivery systems that are necessary to support this initiative.

The Missouri plan amendment is part of Secretary Thompson's initiative to work with states to improve and expand benefits for low-income Americans. Under the Bush Administration, HHS has approved a total of more than 1,900 plan amendments and waivers for the State Children's Health Insurance Program (SCHIP) and Medicaid programs. These waivers and amendments have expanded the opportunity for states to provide health coverage for some 1.8 million Americans and have improved existing benefits for 4.9 million others.

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