Hawaii Cuts Medicaid Program, Institutes Medical Homes

Hawaii legislators have approved a plan to cut approximately 4,500 people from the state's Medicaid program through tightening eligibility requirements and will restrict the number of covered services beneficiaries can receive, according to a Forbes report. 

Under the changes, a family of four earning $34,194 or less would be eligible for the program. The current cut-off is $51,420. The changes also limit new services that are covered by the program to 20 outpatient visits, 10 inpatient days and three outpatient surgical procedures per year, according to the report.

Last week, Gov. Neil Abercrombie and the state's Department of Human Services announced the Medicaid program will implement patient-centered medical homes for beneficiaries to improve care coordination, according to a press release from the Governor's office.

"This is the future of healthcare delivery. Our initial investment in and long term commitment to implement medical homes will improve the quality of care for our people and save the state significant money in the long run," Gov. Abercrombie said in a statement. "We will be treating the person and not just the disease or condition."

The program, which is slated to begin in Jan. 2012, will qualify the state for $9 in federal funding for every $1 spent on implementation over the first two years.

Related articles on Medicaid:
With Medicare Off the Table, Medicaid is Chief Target for Cuts
Florida Legislature Approves Medicaid Overhaul, Shift to Managed Care

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