California First to Receive CMS Approval for Medicaid Community Funds

Last week, CMS approved California’s amendment to enact the Community First Choice Option (pdf), a provision of the Patient Protection and Affordable Care Act that incentivizes states to provide home health services to low-income seniors and people with disabilities in the community rather than a nursing home.

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California, the first state in the country to receive approval, will receive a 6 percent increase in federal matching funds for the new community-based services, and overall, the state expects to see $573 million in additional Medicaid funds over the first two years.

“California continues to lead the nation in healthcare reform. and [CMS’] approval reinforces the support and confidence the federal government has in the Golden State,” California Health and Human Services Secretary Diana Dooley said in the news release. “We look forward to working with our state and federal partners as we move to provide seniors and people with disabilities with better options for self-directed care.”

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