HHS to allow state Medicaid programs to cover care for inmates leaving prison

CMS is allowing states to apply for new waivers that will allow their Medicaid programs to cover services to assist inmates prior to their exit from carceral facilities.

The Medicaid Reentry Section 1115 Demonstration Opportunity will allow states to cover a package of pre-release services for up to 90 days of an incarcerated person's expected release date that could otherwise not be covered by Medicaid due to a longstanding statutory exclusion, according to an April 17 CMS news release. 

Services for substance abuse disorders would be among those covered by the waiver, according to the release. The National Institute on Drug Abuse estimates that the rate of substance use disorders for people who are incarcerated may be as high as 65 percent. 

CMS said improving care transition and addressing social determinants of health for people after they have been released for carceral setting increases the likelihood they may continue to receive substance-use disorder, mental health and other healthcare treatments, according to the release.  

"It also holds promise for reducing emergency department visits, inpatient hospital admissions, overdose, and overdose-related issues, including death, and improving health outcomes overall," CMS said in the release. "Moreover, addressing people's underlying health needs enhances their ability to succeed and thrive during reentry, thereby lowering the risk of recidivism, helping make our communities healthier and safer."

The waiver also aims to improve coordination and communication between correctional systems, Medicaid systems managed care plans and community-based providers, according to the release. 

California became the first state to offer pre-release services through its Medicaid program in January.

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