CMS phasing out federal funds for certain state health programs

The Centers for Medicare & Medicaid Services will no longer accept or renew state proposals for section 1115 Medicaid demonstrations that rely on federal matching funds for health programs previously funded entirely by the state, the agency announced Friday. CMS said several states have obtained federal matching funds for such demonstrations but “have not made a compelling case” that they need the funding to continue important programs previously operated by the state. The agency said it will work with states with pending demonstration proposals that include such state health programs “to identify other options to support innovative state section 1115 demonstrations that promote the objectives of Medicaid.”