New Freedom Initiative and Medicaid Program Integrity Proposals Transmitted to Congress

                Today, Secretary Leavitt transmitted to the Speaker of the House of Representatives and the President of the Senate a draft bill entitled the "New Freedom Initiative Medicaid Demonstrations Act of 2005," and draft proposals that would protect and strengthen the financing of the Medicaid program, as described in the President's fiscal year 2006 Budget.

                The New Freedom Initiative would establish several demonstration projects including: Money Follows the Person Rebalancing demonstration, demonstration of respite for caregivers of adults, respite for caregivers of children with substantial disabilities, and home and community-based alternatives to psychiatric residential treatment facilities for children.  Additional provisions would permit states the option of providing Medicaid home and community-based services for up to 90 days during the time that final Medicaid eligibility is being determined and the removal of disincentives for individuals with disabilities from returning to work by protecting the Medicaid coverage of spouses, if those spouses also have a disability.

                In addition to the New Freedom Initiative draft bill, the Secretary is also forwarding to the Congress draft proposals that would protect and strengthen the financing of the Medicaid program.  These proposals would restructure Medicaid drug reimbursement, reform transfer of assets requirements, and strengthen Medicaid financial integrity.

                The transmittal letters, summaries and draft proposals are attached to this email.  If you have any questions please contact Curtis Kelley (202-690-5480) or Don Johnson (202-690-5500) in the CMS Office of Legislation.

All documents below are in PDF form.

Medicaid Budget Proposal Language

Medicaid Budget Proposal Summary

New Freedom Initiative Summary

New Freedom Initiative Language

Secretary Leavitt Transmittal Letter to Speaker Hastert on Medicaid Budget Proposal

Secretary Leavitt Transmittal Letter to Speaker Hastert on New Freedom Initiative