Rhode Island to Claim $130 Million from U.S. Centers for Medicare and Medicaid Services

PROVIDENCE, RI —Today was the day the governor and Health and Human Services Secretary Elizabeth Roberts revealed the details in their Medicaid overhaul. Called "the next step in Rhode Island's healthcare system transformation efforts that will increase access to quality, affordable care and build healthier communities," the changes will allow the state to save money and help seniors and disabled people stay in their homes, Gov. Gina Raimondo said.

"Rhode Island has received $129.7 million in federal funds that will better position the State to meet 21st-century healthcare needs and demands," she said. The plan is to work with the U.S. Centers for Medicare & Medicaid Services and apply the money "to implement Medicaid payment models that result in better health outcomes and better-quality care, and to strengthen the state's healthcare workforce pipeline," she said.

"This is a big win for Rhode Island - it is a win for our people, and it is a win for our economy," said Raimondo. "This announcement builds on a progressive package of Reinventing Medicaid reforms that is on track to cut costs by more than $100 million while also expanding access to care to more people. Through this initiative, we're going to keep people healthier, without spending any additional general revenue funds. We're also going to strengthen our healthcare workforce development pipeline, to help workers gain the skills that matter for 21st century healthcare jobs."

Part of the savings will materialize as the state shifts toward "value" versus "volume" of services, she said.

Roberts added some of the money will go to train health care workers.

This is how the money works, they said.

"Through an innovative and unprecedented partnership with state institutions of higher education, and the hard work of Rhode Island's Congressional Delegation, the Executive Office of Health and Human Services has received approval from the Centers for Medicare & Medicaid Services to claim a federal match on existing higher education spending on healthcare workforce training. This will allow the State to claim and invest a total of $129 million in federal funds over five years without spending additional general revenue dollars.

Raimondo predicted the state would save an additional $100 million on health care costs.

"As a part of Reinventing Medicaid 2.0 - Health System Transformation, Rhode Island will:

• Improve health outcomes for the one in four Rhode Islanders enrolled in Medicaid. For example, over the long term the funds will help transform Rhode Island's healthcare system so that:
• More Rhode Islanders get well-coordinated care that better addresses all of their needs - mental, physical, and social - so they can stay healthy and avoid more expensive hospital visits and procedures.
• More elderly Rhode Islanders get the long-term support they need to age with independence in their homes and communities, whenever possible.
• Rhode Islanders who require a more intensive level of care and support receive high-quality, better-coordinated care that improves outcomes at hospitals and nursing homes.
• Leverage millions of dollars of additional federal funds to continue transforming Rhode Island's healthcare system.
• Focus on better coordination of care through our managed care organizations and new provider partnerships.
• Ensure Rhode Island has the healthcare workforce it needs by investing in strategic partnerships between Rhode Island's public higher education institutions and healthcare providers to train students with the skills they need for 21st century healthcare jobs.
• Support better care, healthier people, and smarter spending."