Medicaid and Medicare together provide health coverage for approximately 12.2 million low-income seniors and people with disabilities who are dually eligible for both programs. The Centers for Medicare & Medicaid Services’ Federal Coordinated Health Care Office has implemented the Financial Alignment Initiative, a three-year demonstration project, to improve care and reduce program costs for these beneficiaries, as well as improve coordination between the Medicaid and Medicare programs.
As of August 2020, 11 states participate in the Financial Alignment Initiative either under a capitated model, a managed fee-for-service model, or an alternative model. This fact sheet provides a brief summary of Virginia’s capitated demonstration model, which terminated in 2017. It provides historical information on information on enrollment, opt-out rates, and changes to consumer protection and care coordination requirements when the demonstration was in force.