Manatt Health March 11, 2020
The Centers for Medicare & Medicaid Services (CMS) recently issued guidance inviting states to apply for the Healthy Adult Opportunity (HAO), a Section 1115 demonstration that permits states to accept a cap on federal Medicaid funding in exchange for fewer federal rules and less federal oversight. By reducing and capping federal financial support for the Medicaid program, the initiative fundamentally alters the way Medicaid is financed for the demonstration population. In a new analysis for the Commonwealth Fund, Manatt Health estimates the potential financial impact of the HAO block grant option for states and the Medicaid program.
Background
The new HAO capped funding demonstration is a state option targeted to the Affordable Care Act’s (ACA) Medicaid expansion adults (parents as...
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