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Minnesota continues to make progress on the 1115 Reentry Demonstration, an initiative designed to improve access to health care for people who are incarcerated as they prepare to return to the community.
Implementing the demonstration requires coordination across correctional facilities, health care and Medicaid systems, counties, Tribal partners, community organizations, and other partners. Community engagement and feedback are also important to making sure the demonstration meets the needs of people returning to their communities.
This update highlights:
- Actions from the 2026 Minnesota Legislative Session
- Updates from the Centers for Medicare & Medicaid Services (CMS)
- Progress toward Milestone 1 of the 1115 Reentry Demonstration
Future updates will share progress on additional milestones, capacity-building efforts, and opportunities for community engagement.
2026 Minnesota Legislative Session
256B.0619 Carceral Targeted Case Management
Case management and care coordination are important parts of the 1115 Reentry Demonstration. Pending federal approval of Minnesota’s application, qualifying individuals at participating 1115 Reentry Demonstration sites may be eligible for a new carceral targeted case management benefit.
Additionally, individuals covered under Section 5121/5122 of the Consolidated Appropriations Act will be eligible for case management services as they transition from incarceration back into the community.
Minnesota statute 256B.0619 becomes effective early 2028 and will ensure a smoother transition for adults and youth by supporting continuity of care between incarceration and reintegration.
These services may include:
- A comprehensive assessment of need
- An individualized care plan
- Coordination between health care and service providers before and after release
CMS Updates
Minnesota submitted the 1115 Reentry Demonstration application to CMS in January 2025 and remains under review. Approval is expected this fall.
Recently, CMS announced a change to the period when eligible people may receive approved services before release. The pre-release eligibility period will be up to 60 days pre-release rather than the originally planned 90 days.
CMS Milestones
There are five milestones to implement the 1115 Reentry Waiver. Each milestone contains required operational, clinical, and administrative benchmarks to participate in the demonstration.
Milestone 1: Increasing coverage and ensuring continuity of coverage for individuals who are incarcerated.
Milestone 2: Covering and ensuring access to the minimum set of pre-release services for individuals who are incarcerated to improve care transitions upon return to the community.
Milestone 3: Promoting continuity of care.
Milestone 4: Connecting to services available post-release to meet the needs of the reentering population.
Milestone 5: Ensuring cross-system collaboration.
Milestone 1 Updates
The Department of Corrections (DOC), Department of Human Services (DHS), county and Tribal partners, and community interest holders have identified key considerations for each CMS expectation. These collaborative efforts have helped inform targeted solutions for improving the suspension and reinstatement of Medicaid coverage.
Milestone 1a Suspension & Reinstatement
| CMS expectation |
Implementation considerations |
| Suspend coverage during incarceration |
Develop a more consistent statewide notification process |
| Restore benefits quickly after release |
Improve release date communication between facilities and eligible agencies |
| Support access to approved pre-release services |
Develop processes to identify individuals approaching the 60-day window |
| Minimize coverage gaps |
Explore data-sharing and automation opportunities over time |
Milestone 1b Eligibility & Applications
| CMS expectation |
Implementation considerations |
| Provide individuals the opportunity to apply for Medicaid while incarcerated |
Determine when eligibility screening should occur during incarceration (intake-24 hours) |
| Offer assistance with the application process |
Identify who will support eligibility and application activities |
| Ensure individuals receive eligibility notices and determinations |
Establish processes for communicating notices and follow up actions |
| Make application methods accessible (online, mail, phone, in-person) |
Consider operational approaches for short-stay and pre-adjudicated individuals |
Milestones 1c-1e Renewals, Documentation & Out-of-State Applications
| CMS expectation |
Implementation considerations |
| Renewals activities are supported and individuals maintain coverage |
Renewals help prevent eligible individuals from losing coverage due to administrative issues |
| Individuals have documentation of coverage upon release including Medicaid identification information |
Documentation helps individuals understand their coverage status upon release and know who and where to communicate once they are out |
| Individuals have out-of-state coverage information and application assistance resources |
Out-of-state support recognizes that some individuals will leave Minnesota and may require information regarding coverage options in another state |
Key takeaways
- Continuity of coverage relies on dependable communication about incarceration status and release timing.
- Earlier identification of uninsured individuals creates more opportunities to establish coverage before release.
- Data sharing and system changes will be necessary for timely identification of eligible individuals and the suspension and reinstatement of Medicaid coverage.
Next Steps
- A technology solutions workgroup to streamline suspension and application processing.
- Medicaid status and eligibility questions incorporated into carceral intake processes.
- The establishment of processes for tracking tentative release dates to initiate prompt release planning.
- Pending approval of Minnesota’s application in fall 2026.
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