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B-164031(4) 1 (1974-03-12)

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                           COMPTROLLER r.ENEEhAL tF THIFUNITED                      -7~S.)f ..''
                                       WASHINGTON D C 20548

                               RELEASED
            B-164031(4)                                6          MAR 12 1974

            The Honorable Ralph H Metcalfe
       C    House of Representatives

            Dear Mr Metcalfe:

                 In response to your July 17, 1972, letter we have reviewed the
           [administration of the Early and Periodic Screening, Diagnosis, and
           Treatment program (EPSDT) by Illinois under its Medicaid program.
           Medicaid is administered at the Federal level by the Social and
           Rehabilitation Service of the Department of Health, Education, and
           Welfare (HEW). This report summarizes the matters discussed in a
           meeting with representatives of your office on September 13, 1973,
           and includes additional information requested during that meeting

                 The 1967 amendments to the Social Security Act (42 U.S.C.
            1396) added EPSDT as a required Medicaid service effective July 1,
            1969. This service was intended to provide preventative health care
            to children through age 20. In November 1971--more than 2 years
            after EPSDT became a required service--HEW issued regulations which
            required the States to have ongoing programs by February 1972 for
            eligible children through age 5 and by July 1973 for eligible
            children through age 20.

            SCOPE OF REVIEW

                 We reviewed Illinois' progress in implementing the program,
            including outreach activities, screening activities, and the system
            for followup to help insure that eligible children receive pre-
            scribed examinations and needed treatment   We reviewed pertinent
            records and discussed the program with officials of HEW's Chicago
            regional office, the Illinois Departments of Public Health and
            Public Aid, Cook and Sangamon County Departments of Public Aid, and
            the Chicago Board of Health. We visited eight providers of early
            screening and diagnostic services, including five doctors, one
            dentist, one professional corporation, and one county health depart-
            ment. (The latter two were demonstration projects.)

                 Also, we sent questionnaires to 10 families who had received aid
            to families with dependent children (AFDC) for more than 1 year and
C      /    had at least 1 child under age 6.

            IMPLEMENTATION OF EPSDT

                 Initially the Illinois Department of Public Health was to design,
            develop, and operate this program with Public Aid serving as the State
            agency for billing only. The Illinois legislature refused to appro-
            priate funds for the program to Public Health; instead, in June 1972,

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