States Can Cut Costs Without Medicaid Waivers: HHS

Law360, New York (February 3, 2011, 8:10 PM EST) -- In a letter to state governors, U.S. Secretary of Health and Human Services Kathleen Sebelius pledged on Thursday to work with states to cut health care costs without exempting them from Medicaid requirements.

Sebelius said states can keep their costs down by relying more on generic drugs, cutting some optional services and benefits, more effectively managing care for high-cost enrollees, and performing better audits to prevent fraud and waste.

While Sebelius stressed that states could reduce their costs without making enrollment cuts, she said the U.S....
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