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States' budget woes can push them toward Medicaid reforms.(Community-Based Services)

Developments in two states show how Medicaid funding shortfalls can be catalysts to get more support for community care.

In late October, New York Gov. George Pataki (R) signed a measure (A. 11798/S. 7715) to create a new Medicaid waiver for adults eligible for nursing-home levels of care to have Medicaid pay for alternative community-based care. Unlike some versions of the "Money Follows the Person" model, Medicaid beneficiaries will not have to go into a nursing home first, and then transition out.

Talks have been underway in the state to reform Medicaid financing ever since the 1999 Olmstead decision, said Chris Hilderbrant, director of advocacy with the Center for ...

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