CMS Approves New Medicaid Reentry Waivers for Four States
The policy change expands access to substance-use treatment and behavioral health services for individuals before their release.
Updated on Oct. 23, 2026 in Substance Abuse
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Effective October 1, 2026, the Centers for Medicare & Medicaid Services approved Medicaid reentry demonstration waivers for Louisiana, Minnesota, Maine, and Nevada. The agency also renewed a similar demonstration for Washington, D.C. to support health transitions for incarcerated individuals.
Why it matters
The program addresses healthcare gaps for those leaving incarceration who have mental health or substance-use disorders. It seeks to reduce long-term taxpayer costs, decrease overdose rates, and lower recidivism.
A total of 22 states and Washington, D.C. now have approved Medicaid reentry waivers as of October 2026. The programs provide services including behavioral health counseling and a 30-day supply of prescription medication.
The players
Centers for Medicare & Medicaid Services
This federal agency within the U.S. Department of Health and Human Services manages the Medicare program and works with state governments to administer Medicaid.
Donald Trump
As the President of the United States, he signed the 2018 SUPPORT Act that provided the legislative framework for these healthcare transition improvements.
The details
States utilize Section 1115 demonstration requests to secure authority for using Medicaid funding for services prior to an individual's release. Louisiana intends to initiate its specific demonstration at the Elayn Hunt Correctional Center in early 2027 before potentially expanding to other facilities.
Timeline
President Trump signed the SUPPORT Act in 2018.
CMS released guidance for Medicaid Reentry Section 1115 demonstrations in April 2023.
The new Medicaid reentry demonstration approvals took effect on October 1, 2026.
Louisiana plans to launch its demonstration program in early 2027.
The approved demonstration period concludes on September 30, 2031.
Health Landscape
These new waiver approvals extend the mandate established by the 2018 SUPPORT Act to improve health care transitions for incarcerated people. The expansion signals a shift in federal policy toward using Medicaid to address health outcomes prior to release.
The program directly impacts individuals leaving incarceration by providing access to medication-assisted treatment and behavioral health services upon reentry. These changes aim to stabilize health conditions and reduce the risk of overdose during the transition back into the community.
The takeaway
This policy change demonstrates a coordinated federal and state effort to integrate clinical care into the criminal justice transition process. By prioritizing continuity of care, states aim to improve public safety while addressing the underlying needs of those with substance-use disorders.
What happens next
Louisiana is scheduled to initiate its demonstration program at the Elayn Hunt Correctional Center in early 2027. Additionally, states must comply with new federal budget neutrality requirements starting in 2027 to continue the financial efficacy of these programs.
Further reading
Learn more about the federal policy landscape at Substance Abuse.
Source note: This article includes information reported by Newsweek.
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Should government Medicaid funding cover health services for individuals shortly before their release from prison?
