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More Information Bazelon Center comments (PDF) CMS' proposed rule

Action Alert

Proposed Rules Issued for State Flexibility in Medicaid Plans

March 13, 2008--Section 6044 of the Deficit Reduction Act of 2005 (DRA) radically changes how Medicaid operates, eliminating the principles of statewide coverage and identical benefit packages for all individuals covered in a state’s plan. OnFebruary 22, the Centers for Medicare and Medicaid Services (CMS) issued proposed rules on how states may implement this provision.

The DRA allows states to modify the Medicaid benefit package for some beneficiaries. States may amend their state plan to shift some groups of individuals into what is called “benchmark coverage” or “benchmark-equivalent coverage.” This coverage parallels the coverage authorized under the State Children’s Health Insurance Program (SCHIP). There are some restrictions on which groups of Medicaid-eligible individuals can be required to enroll in these more limited benchmark plans.

For details, see the Bazelon Center's new report on state policy choices under the DRA.

Comments on the proposed rules are due by 5 pm on March 24 (click here for how to submit comments). The Bazelon Center's comments are available as a model at www.bazelon.org/issues/medicaid/takeaction/BenchmarkPlans_Comments.pdf.

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