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November 2003

ShareReview of The Commonwealth of Pennsylvania's Medicaid Behavioral HealthChoices Program

The HealthChoices program began in  February 1997 under a waiver granted by the Centers for Medicare & Medicaid Services  (CMS) under section 1915(b) of the Social Security Act. The program has two components,  physical health and behavioral health and is administered by Pennsylvania's Department of  Public Welfare (DPW). Our objectives were to determine: (I) to what extent  intergovernmental transfers or other financing mechanisms are used to maximize Federal  Medicaid reimbursement, (2) if the contract procurement process conforms to Federal regulations and (3) if the profits1 (or losses) incurred by counties in administering this program are unreasonable.

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