Medicaid Transformation Project extended for one more year

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Medicaid Transformation Project extended for one more year

CMS approves additional year for Washington’s Section 1115 Medicaid demonstration waiver

Centers for Medicare & Medicaid Services (CMS) has approved Washington State’s request for a one-year extension to the Medicaid Transformation Project (MTP).

MTP is what we call Washington’s Section 1115 Medicaid demonstration waiver. It allows us to create and continue to develop projects, activities, and services that benefit Apple Health (Medicaid) enrollees. The Health Care Authority (HCA) requested the extension because of the disruption caused by the COVID-19 pandemic.

CMS’ approval provides one additional year for all five MTP initiatives, from January 1–December 31, 2022. Initiatives include:

  1. Transformation through Accountable Communities of Health (ACHs) and Indian health care providers (IHCPs): ACHs and IHCPs are implementing projects that change the way people receive health care in their region.
  2. Long-term services and supports (LTSS) supports Washington’s aging population and family caregivers through Medicaid Alternative Care and Tailored Supports for Older Adults programs.
  3. Foundational Community Supports (FCS) helps vulnerable adults find and maintain stable housing and employment.
  4. Substance use disorder (SUD) IMD allows Washington State to make improvements and use federal financial participation for Medicaid SUD treatment services in facilities that are “institutions for mental diseases” (IMDs).
  5. Mental health IMD allows Washington State to purchase acute inpatient services for Medicaid clients between the ages of 21 and 65 who reside in a dedicated, large psychiatric facility that qualifies as an IMD.

In addition to this one-year extension, our state plans to submit a five-year MTP renewal application to CMS in mid-2022. This renewal package will include a plan for the evolution of Initiative 1, continuation of Initiatives 2-5, and several new initiatives, beginning in 2023. If approved, the MTP renewal period would be from January 2023–December 2027.

Learn more about MTP and its initiatives and the MTP renewal.