CMS No Longer Accepting State Proposals to Finance Medicaid 1115 Demonstrations
Today, the U.S. Centers for Medicare & Medicaid Services (CMS) released a letter to states announcing that CMS will no longer accept state proposals to finance Medicaid 1115 Demonstrations by drawing down federal funds for programs that have historically been paid for by states outside of Medicaid. These time-limited arrangements, known as Designated State Health Programs (DSHP), allow states to bypass paying their usual share of Medicaid expenses for demonstration programs. Current DSHP demonstrations will continue until the end of the demonstration period, but will not be extended or renewed.
More information on CMS’s decision is available here.