2012-01-19 / Local & State

Pa. Welfare Agency Alters Benefits Handling Rules

HARRISBURG, Pa. (AP) – The Pennsylvania Department of Public Welfare wants to dramatically reduce the number of organizations that can provide financial management services to Medicaid recipients who get home-based and community-based services.

Public Welfare Secretary Gary Alexander said Thursday the change will improve efficiency and lower the cost of state programs.

Officials say Pennsylvania now has 37 organizations that help 22,000 state residents manage money, while many states have only a small number of such groups. Alexander wants to cut it in Pennsylvania to three or fewer.

The welfare agency is allowing current financial management services providers to bid on the three regional contracts. Applicants will have to submit a transition and implementation plan.

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