HHS Rews Release

HHS Secretary Donna E. Shalala announced policies and procedures today that will guide the department when reviewing state waiver requests under the Aid to Families with Dependent Children and Medicaid programs.

The policies and procedures are designed to streamline and afford public comment in the review process for health and welfare reform proposals by the states. They will be published in the Federal Register Tuesday.

The department's "section 1115" waiver authority allows the approval of selected state welfare reform and health reform demonstration programs. In August 1993, HHS adopted internal policies defining the criteria for review of waiver requests. These principles have guided the department's review and approval of 18 AFDC demonstrations and six statewide health reform projects since the Clinton administration took office.

"State flexibility is key to our efforts to test new ways to improve the AFDC and Medicaid programs and we have already made great progress in simplifying what had been a cumbersome process," Secretary Shalala said. "We recognize, as well, that public consultation can help states shape demonstrations that will allow us to conduct our review and decision-making more quickly.

"These policies are designed to provide the appropriate public input, speed up the process and maintain our commitment to provide quality services to our beneficiaries."

Tomorrow's Federal Register notice will publish the principles adopted in August and build on them by involving the public in a consultative process with the states prior to departmental review of waiver requests.

Under the policies, states have great flexibility in providing the public opportunity to learn about and comment on the content of a proposal. Consultation may include public hearings or other similar processes for public input.

Each month the department will publish a notice in the Federal Register of all new and pending proposals. HHS will continue to accept and consider written comments regarding demonstration projects.

The policies and procedures also affirm the department's commitment to meaningful evaluations using a broad range of appropriate evaluation strategies. During a period of continuing budgetary constraints, the department will maintain the policy of cost neutrality, although cost neutrality is being assessed over the life of the proposed demonstration program instead of year by year.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Melissa Skolfield (202) 690-6853