HD39 - Feasibility and Cost-Effectiveness of Applying for a Medicaid Waiver for Case Management
Executive Summary: The 1982 session of the General Assembly directed the Secretary of Human Resources to conduct a feasibility and cost effectiveness study of applying for Medicaid Wavier for case management for the mentally retarded. This analysis has concluded that a Federal Medicaid Waiver for case management is not cost-effective for the Commonwealth or its localities. Financial analaysis indicates the potential cost savings in State and local funds through federal Medicaid participation in the cost of waivered case management services are more than offset by requirements for additional local case management staff and by the need for expanded community-based services for the clients who would be eligible for waivered services. The report recommends the Departments of Health and Mental Health and Mental Retardation complete the development of a waiver for an array of community-based services, including case management, which are necessary to support a mentally retarded person in the community at less cost than institutional care. This application for a waiver for an array of community-based services will be developed by July 1, 1984 for implementation during the 1984-86 biennium. Medicaid funding in the amount of $2 million to initiate this comprehensive waiver approach will be available from projected medicaid savings in the Department of Mental Health and Mental Retardation budget due to projected geriatric center medicaid cost reductions. |