What new options are available to states under the Deficit Reduction Act?
The Deficit Reduction Act of 2005 (DRA) created a number of new options for state Medicaid programs. Before DRA was enacted, states were required to use federal waiver authority to achieve some of these goals. Some of those options have been tried by states under waivers, but they now can be implemented by amending the state Medicaid plan. One set of provisions gives states the authority to offer population-specific coverage arrangements through benchmark benefit packages. This option permits states to create “customized coverage” for specific groups of people in various coverage categories. The provisions may support state efforts to provide certain Medicaid beneficiaries with additional preventive or supportive services that usually are not found in traditional Medicaid. The law also allows implementation of disease management services, as well as incentive-based approaches or premium assistance for private insurance or other experiments. Other important provisions allow states to va
