Press Release: CMS Takes Bold New Approach to Stewarding Medicaid Demonstration Project Spending

About this document

While states use demonstrations to test innovative ways to deliver care and improve health outcomes, the bounds of what is considered “budget neutral” have expanded over time to reflect evolving policy priorities and increased section 1115 demonstration spending. This new guidance previews CMS’ plans to propose a rule that would ensure consistent oversight and clear budget neutrality requirements for proposed demonstration projects, which will help states cost-effectively enhance programs and ensure fiscal integrity, while lowering costs and improving outcomes. “Medicaid works best when states can innovate and are held accountable for results,” said CMS Administrator Dr.