States continue to identify state funding that can be used to obtain additional federal matching funds from the Centers for Medicare & Medicaid Services (CMS) for their Medicaid programs. In many states, public funds are being spent for healthcare services that are not currently matched with federal funds, such as behavioral health. An opportunity may exist to leverage a portion of these state-only funds and use them as the state match to draw federal Medicaid funding.
Officials at CMS and the Office of Management and Budget have wide authority to approve Section 1115 Medicaid Research and Demonstration waivers. Section 1115 waivers allow states to demonstrate and evaluate different Medicaid policies and have been used to expand eligibility or introduce new delivery systems. These waivers can be designed to allow states to continue existing financing mechanisms or create alternative mechanisms that maximize federal revenues while advancing programmatic change. The authority to approve these waivers is entirely within the discretion of federal officials and is subject to negotiation between federal and state officials based on mutually desirable policy goals.
Sellers Dorsey has provided strategic consulting services to several states making significant policy changes that resulted in increasing or maintaining existing federal financial participation. For more information, please contact firstname.lastname@example.org