Blueprint For New Beginnings:  HHS Initiatives

HHS priority initiatives from the President's "Blueprint for New Beginnings:"

Providing an Immediate Helping Hand (IHH): As prescription drugs have become an integral part of modern medicine, private health insurance in the United States has changed to incorporate adequate prescription drug insurance.  Yet Medicare still does not provide coverage for most drugs as part of its benefit package.  As a result, about three in 10 Medicare beneficiaries have no insurance coverage for prescription drugs.

To renew the promise made to our seniors 35 years ago, the President will propose to enact the IHH prescription drug proposal.  The IHH proposal provides for immediate funding to states to allow for interim prescription drug coverage for those beneficiaries who need it most.  This immediate assistance will gives states the temporary financial support they need to protect beneficiaries with limited incomes or very high drug expenses and no other alternative for drug coverage until Medicare reform is achieved.

The IHH proposal will cover the full cost of drugs for individual Medicare beneficiaries with incomes up to $11,600 who are not eligible for Medicaid or a comprehensive private retiree benefit, and for married couples with incomes up to $15,700 (135 percent of poverty) who do not have access to coverage. These beneficiaries would receive comprehensive drug insurance for a premium of $0, and would pay a nominal charge for prescription.  The proposal would also cover part of the drug costs for individual Medicare beneficiaries with incomes up to $15,000 and married couples with incomes up to $20,300 (175 percent of poverty).  These beneficiaries would receive subsidies for at least 50 percent of the premium of high-quality drug coverage.  The IHH proposal would also provide catastrophic drug coverage for all Medicare beneficiaries, giving them financial security against the risk of very high out-of-pocket prescription expenditures.

The IHH proposal would begin immediately.  Unlike other plans, IHH builds on coverage that is available in over half the states, and under consideration in almost all states.  No other proposal would provide interim access to drug coverage for up to 9.5 million of the most vulnerable Medicare beneficiaries until Medicare reform can be enacted.  This would minimize the temporary burden on states.  IHH is 100 percent federally funded, with flexibility in how states can choose to establish or enhance drug coverage.

Doubling Resources for the National Institutes of Health (NIH):  The 2002 Budget includes a Presidential initiative to double NIH's 1998 funding level by 2003.  NIH is working to meet the management challenges that can arise when an agency receives a substantial infusion of resources over a short period of time.  NIH is in the process of identifying strategies and policies that could be implemented in 2002 and 2003 and beyond to maximize budgetary and management flexibility in the future.  Such strategies could include funding the total costs of an increasing number of new grants in the grant's first year and supporting some one-time activities such as high-priority construction and renovation projects.

Strengthening the Health Care Safety Net: To strengthen the health care safety net for those most in need, the budget recommends a $124 million increase for Community Health Centers.  This increase is the first installment for a multi-year initiative to increase the number of community health center sites by 1,200.  Community Health Centers, which are a critical component of the American health care safety net, provide health services to roughly 11 million patients, 4.4 million of whom are uninsured, through a network of over 3,000 community-based health care center sites.

Reforming the National Health Service Corps (NHSC): The NHSC management reform will examine the ratio of scholarships to loan repayments, as well as other set-asides, to provide maximum flexibility in placing NHSC providers.  The Administration will also seek to amend the Health Professional Shortage Area definition to reflect other non-physician providers practicing in communities, which will enable the NHSC to more accurately define shortage areas and target placements better.  To further avoid overlap in the provision of health care, HHS will enhance its coordination with immigration programs, including the J-1 and H-1C visa programs, which review applications for foreign health care providers practicing in underserved communities.  The NHSC initiative will also encourage more health care professionals to participate in the NHSC by making scholarship funds tax free.

Increasing Access to Drug Treatment: The President recommends an additional $111 million to increase the availability of substance abuse treatment services.  Included in this amount is $100 million for the Substance Abuse and Mental Health Services Administration to help close the treatment gap.  The increase includes $60 million to help states finance treatment to those in need through the Substance Abuse Block Grant, and an additional $40 million will be made available through the Targeted Capacity Expansion grants designed to support a rapid, strategic response to emerging trends in substance abuse.

Supporting the Healthy Communities Innovation Fund Initiative: HHS will allocate approximately $400 million in 2002 funding for existing grant activity for innovations at the local level, including programs to promote comprehensive care through integrated state health care delivery systems for women and children.  HHS will increase coordination among these funds to ensure that the best and broadest range of innovative solutions are funded across the country.

Promoting Safe and Stable Families: The budget proposes funding the Promoting Safe and Stable Families program at $505 million in 2002, a $200 million increase over the 2001 level.  These additional resources will help states keep children with their biological families, if safe and appropriate, or to place children with adoptive families.  The budget also includes a $60 million increase for education and training vouchers to youth who age out of foster care.  This initiative, which would be funded through the Independent Living Program, would provide vouchers worth up to $5,000 for education or training to help these young people develop skills to lead independent and productive lives.

Creating After School Certificates: The President's Budget creates a new $400 million after school certificate program within the Child Care and Development Block Grant, raising total funding to $2.2 billion.  The new program would provide grants to states to assist parents in obtaining after-school childcare with a high-quality education focus.

Promoting Responsible Fatherhood: The budget provides $64 million in 2002 ($315 million over five years) to strengthen the role of fathers in the lives of families.  This initiative will provide competitive grants to faith-based and community organizations that help unemployed or low-income fathers and their families avoid or leave cash welfare, as well as to programs that promote successful parenting and strengthen marriage.  The initiative also funds projects of national significance.

Supporting Maternity Group Homes: The budget recommends providing $33 million in 2002 for maternity group homes, which are community-based, adult-supervised group homes or apartment clusters for teenage mothers and their children.  The homes provide safe, stable, nurturing environments for teenage mothers and their children who cannot live with their own families because of abuse, neglect, or other extenuating circumstances.