What does Medicaid HCBS allow states to do?

Medicaid Home and Community-Based Services (HCBS) enables states to provide support and assistance to individuals with disabilities or chronic illness while allowing them to remain in their homes and communities, rather than being confined to institutional settings. The correct answer reflects that states can waive one or more eligibility requirements traditionally associated with Medicaid services. This flexibility allows states to tailor their programs to meet the unique needs of their populations, expanding access to necessary services for individuals who might not otherwise qualify under standard Medicaid requirements.

This flexibility is crucial because it empowers states to create more inclusive service options that can alleviate the burden on institutional care facilities, promote individual choice, and foster independence among beneficiaries. By waiving specific requirements, states can reach underserved populations requiring assistance, thereby enhancing their ability to provide comprehensive care.

In contrast, options that suggest waiving all funding eligibility requirements would undermine the structure and oversight of Medicaid, potentially leading to unchecked program expansion without proper accountability. The notion of funding more services than the cost of institutional care inadequately captures the purpose of HCBS, which aims to offer alternatives while often aiming to save costs related to long-term institutionalization. Limiting services to institutional care conflicts with the fundamental intent of HCBS programs, which is to encourage community-based living and support.