CMS provides first guidance letter about Medicaid changes

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The Centers for Medicare & Medicaid Services Friday released its first guidance letter to states about changes in the Medicaid program as a result of the healthcare reform law.

The letter provides guidance about the establishment of a new Medicaid eligibility group. It mentions that states, as of this month, have the option to begin providing medical assistance to those eligible.

“Under the law, for the first time since the Medicaid program was established, States will receive Federal Medicaid payments to provide coverage for the lowest income adults in their States, without regard to disability, parental status or most other categorical limitations, under their State Medicaid plans,” according to the letter.

The letter comes as several states have launched challenges to the new law over its expansion of state Medicaid programs.