Reducing Emergency Department Utilization through Coordination and Empowerment Demonstration Program Act or the REDUCE Demonstration Program - Directs the Secretary of Health and Human Services (HHS) to establish the REDUCE demonstration program under which the Secretary shall enter into agreements with states to provide for the development, implementation, and evaluation of innovative approaches to coordinated care management and increased access to community support services for targeted beneficiaries under title XIX (Medicaid) of the Social Security Act in order to reduce hospital admissions and the use of emergency health care services.