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Recent Developments in Section 1115 Demonstration Waivers: Implications for Future Policy

The Centers for Medicare & Medicaid Services (CMS) has recently approved several large-scale Section 1115 demonstration waivers that allow states to test the efficacy of new approaches to delivering Medicaid services and improving population health. These include changes to eligibility rules, benefit coverage, and measures to address the social determinants of health and health-related social needs. These waivers also incorporate modifications to prior CMS policies on waiver financing, provider payment, and budget neutrality.

To better understand these policy developments, MACPAC reviewed the waiver applications and approval documents, including the special terms and conditions, for several recently approved comprehensive waivers. This presentation provides an overview of the key policy changes.