Deficit Reduction Act

October 13, 2010


The Deficit Reduction Act (DRA), passed by Congress and signed into law in February 2006 dramatically changes state options for the Medicaid program. States now have new latitude to charge co-payments and premiums. These are complicated changes to state financing of Medicaid. The FV Policy Team has developed a paper, Changes in the Medicaid Program: The Deficit Reduction Act (DRA) of 2005 which outlines the parameters states now have to make changes to their Medicaid program. In addition, the DRA included the Family Opportunity Act, a state option that will allow families of children and youth with special health care needs to purchase Medicaid. The DRA also includes Money Follows the Person, and funding to establish Family-to-Family Health Information Centers in every state.