CMS Issues Dear State Medicaid Director Letter on Medicaid Health Homes

November 16, 2010

The Centers for Medicare and Medicaid Services has issued a Dear State Medicaid Director letter that provides preliminary guidance for States on the implementation of ACA section 2703 entitled “State Option to Provide Health Homes for Enrollees with Chronic Conditions." 

Beginning January 1, 2011, Section 2703 creates a new state option via a state plan amendment to provide coordinated care through a health home for eligible individuals with chronic conditions, including mental health and substance use.

States can receive a 90% matching rate for qualifying home health services during a two year period.  Services to eligible individuals under section 2703 may include: comprehensive care management, care coordination and health promotion, comprehensive transitional care, patient and family support, referral to community and social support services and use of health information technology to link services.  The guidance also includes instruction for states which already conduct home health initiatives.

Here is the Dear State Medicaid Director Letter.