Using Medicaid Funding to Support the Employment of People with Disabilities: A Federal Framework

State Medicaid agencies fund a multitude of supports and services for individuals with disabilities. As national public policy has recognized and emphasized the ability of individuals with disabilities to work, states have begun to integrate employment supports into the continuum of long-term care in Medicaid. This new NTAR issue brief discusses the federal legislative and regulatory framework for funding employment supports in Medicaid, and highlights examples of state innovations and best practices for using Medicaid to promote positive employment outcomes. The brief concludes that states have a significant amount of flexibility through both state plan and waiver services when designing Medicaid program services and supports, and when defining who is covered in their programs. State policymakers have a broad range of options available to design initiatives that support disability employment, using Medicaid funds in combination with other federal and state resources. .