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CMS Releases FAQ on Exchanges, Market Reforms, and Medicaid Expansion

Tuesday, December 11, 2012

Yesterday CMS released a document responding to the many of the questions governors across the country have been asking related to the operation of insurance Exchanges, consumer outreach requirements, maintenance of high-risk pools, multi-state insurance plans, and strategies for promoting continuity of coverage between Medicaid/CHIP and a state's Exchange. Additionally, CMS published much anticipated responses to questions about the expansion of the Medicaid program. Specifically, they indicated that states cannot adopt a phased-in or partial expansion of Medicaid and receive the enhanced federal matching rate. However, it was suggested that in 2017 states could propose a Medicaid 1115 demonstration in concert with a State Innovation Waiver and receive enhanced federal matching dollars. CMS also confirmed that states electing to expand their Medicaid program to 133% of the federal poverty level can later submit a state plan amendment to end the state's participation in the expansion.

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