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1993.04.14 :  Medicaid Demonstrations -- New York, Massachusetts, South Carolina, Maryland and Washington

Contact: Anne Verano (202) 690-6145
April 14, 1993

       HHS Secretary Donna E. Shalala today announced that the
states of New York, Massachusetts, South Carolina, Maryland and
Washington will conduct Medicaid demonstration projects to test
methods for reaching and treating pregnant drug abusers and their
children.
       More than 2,000 women--at least 300 in each state--will
receive care during the three-year, $6 million demonstration.
       "We are seeking the most effective strategies for bringing
these women into appropriate care and preventing tragic
consequences for them and their infants," Secretary Shalala said.
       The projects, which will be administered by the Health
Care Financing Administration, stem from surveys of urban
hospitals showing 100,000 babies born each year to drug-abusing
mothers.
       The states will conduct outreach programs to find
pregnant, 
Medicaid-eligible drug abusers, and to provide them with prenatal
care, drug treatment and counseling, and other services.
       "Healthier babies mean lower Medicaid costs," said William
Toby Jr., acting administrator of HCFA.  "We believe this
demonstration will result in fewer infants spending the first
weeks of life in costly intensive care units, fewer infants
requiring medical treatment in the months and years ahead, and in
Medicaid savings to the states and federal government of $1
million."
       Low birth weight and other health problems affect many of
these infants, and drug dependency frequently limits the ability
of their mothers to care for them.
       "These projects are in keeping with the Clinton
administration's commitment to give states the flexibility to
initiate programs that serve their specific needs," Toby said.
       The selected states presented strong prenatal care and
substance abuse treatment systems, research and data management
capability, and other innovative strategies, including creative
methods of outreach.
       Women entering the program may also receive ancillary
services, 
such as nutrition counseling, parenting education and
transportation 
to service sites.
       Case management--the assignment of a qualified individual
to plan and coordinate all of the services needed by a patient--
is a feature of the demonstration project in each state.  
       Massachusetts, New York, Washington and South Carolina
will treat some women in residential substance abuse treatment
facilities.


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Editor's Note:  HCFA, an agency of the U.S. Department of Health
and Human Services, directs the Medicare and Medicaid programs,
which help pay the medical bills of more than 67 million
Americans.  HCFA's estimated fiscal year 1993 expenditures are
almost $230 billion.