Manatt Health Partner Cindy Mann was featured on the Health Affairs This Week podcast, where she discussed budget neutrality requirements for Medicaid 1115 demonstrations, the challenges they present to innovation in Medicaid and potential paths the Centers for Medicare and Medicaid services could take to address this policy.
In the episode, Mann explained the history and purpose of Section 1115 of the Social Security Act, which provides the legal authority and federal funding states may need to test innovations in coverage and delivery systems to promote the goals of Medicaid, such as addressing health disparities and advancing equity. She also discussed the long-standing federal budget neutrality policies for these demonstrations, noting: “It’s a policy that has been applied for decades, but it’s not required by statute, by regulation or by court decision, which means that the Administration has the ability to change the rules without going to Congress or even promulgating a new regulation.”