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The Commonwealth Fund:
This report analyzes the provisions of the Deficit Reduction Act of 2005 (DRA) and assesses their implications for the provision of early childhood preventive and developmental services in Medicaid.
The DRA may have significant effects, given the high proportion of young children enrolled in Medicaid---28 percent of all children under age 6 in 2001---and the broad range of services covered.
It gives states broad powers to restructure coverage through the use of a "benchmark" option but also retains Early and Periodic Screening, Diagnostic, and Treatment services as the coverage standard for children under age 19.
Finally, it redefines the federal role in financing targeted case management services, which have assumed a central role in child development programs for vulnerable children and families.
The core provisions of the DRA that could affect young children's health and development are related to eligibility, premiums, cost-sharing, the benefit package, and targeted case management (Table ES-1).
IMPLICATIONS AND CONCLUSION The DRA makes a number of significant changes in federal Medicaid policy.
Some of the changes could negatively affect children and families' access to care, while others enable states to expand access to services.
As the provisions of the DRA are implemented, it will be important to focus on how they affect the quality and availability of developmental services for young children and families.
Posted on October 5, 2006 02:03 PM
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