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03/09/99 21:01 FAX 002/027 (2/10/99 Passback # 11 - Caseload Rediction Credit (form and policy chage re: all+ 2-part caseload, but not in the 1995 base because the State has rates) expanded its eligibility criteria since 1995, the net CRC caseload decrease calculation will adjust for this difference. Please refer to $261.42 for additional SSPs discussion. Section 261.41--How Will. We Determine the Caseload Reduction Credit? ($271.41 of the NPRM) In the proposed rule, we explained how difficult it was to develop an appropriate methodology to quantify the different types of caseload reductions. We had considered and rejected two alternatives, i.e., the use of Medicaid records to estimate the effect of eligibility changes (since Medicaid eligibility is based on the July 1996 AFDC eligibility rules) and a computer simulation model. Neither alternative could produce reasonably accurate estimates of the effect of eligibility changes on the caseload size. Nor did our extensive consultations provide a straightforward methodology that could be universally applied. As a result, the NPRM proposed a caseload reduction methodology based on State-súbmitted information and estimates. These regulations incorporate the same basic approach. Under the final rules, we determine the appropriate caseload reduction for each State using the 325