Pennsylvania Department of Public Welfare to Consolidate Financial Management Services Under Medicaid Home- and Community-Based Waivers

HARRISBURG, Pa., Jan. 5, 2012 /PRNewswire-USNewswire/ -- The Department of Public Welfare is consolidating the number of organizations that provide Financial Management Services (FMS) to Medicaid enrollees who receive home- and community-based services, Secretary Gary D. Alexander announced today.

FMS allows Medicaid enrollees to direct their benefits to a company which then manages their financial, payroll, tax withholding and bill paying on their behalf.

Currently, 37 organizations provide FMS to approximately 22,000 people in Pennsylvania. DPW will accept applications for up to three entities that will provide FMS throughout the state or on a regional basis. Most states have just one or a hand full of FMS providers; no other state has 37 providers.

In addition to reducing the number of FMS providers, the transition will help to ensure that services are consistent, efficient, and cost-effective. Safeguards are in place to ensure a seamless transition for recipients. The consolidation will not impact benefits, services or access to care.

"In this time when the economy requires funding cuts on both state and federal levels, we need to be more efficient," said Alexander. "Consolidating this system will help lower the overall price of services, produce cost savings for the state programs and ensure compliance with state and federal laws." 

The department issued a Request for Application (RFA) for FMS services. All current FMS providers may bid for one, two or all three regional contracts. Applicants are required to submit a transition and implementation plan to ensure that participants of the waivers will not see a lapse in service or an interruption of care. 

The Corbett administration is committed to ensuring the continued care, health and safety of recipients who receive services through home- and community-based waivers and state-funded programs. 

For more information about the Department of Public Welfare, visit the department's website at www.dpw.state.pa.us or call 1-800-692-7462.

Media contacts: Carey Miller and Anne Bale, 717-425-7606

SOURCE Pennsylvania Department of Public Welfare

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