Healthcare for Former Inmates: HHS’s Demonstration Opportunity to Bridge the Gap in Access and Support

The Department of Health and Human Services (HHS) recently announced that five states – Illinois, Kentucky, Oregon, Utah, and Vermont – have been authorized to provide healthcare coverage for individuals transitioning out of incarceration. This includes continuing Medicaid and Children’s Health Insurance Programs (CHIP) coverage for incarcerated individuals.

HHS Secretary Xavier Becerra highlighted the importance of this initiative in advancing health equity and supporting successful transitions back into the community for individuals involved in the justice system. The White House Office of National Drug Control Policy (ONDCP) Director Dr. Rahul Gupta also emphasized the critical role of expanding access to treatment and recovery supports for incarcerated individuals in addressing the overdose epidemic.

Through the Centers for Medicare and Medicaid Services (CMS), HHS approved these Medicaid and CHIP demonstrations to ensure coverage is provided before release and to prevent any gaps in healthcare access. Historically, individuals transitioning out of incarceration have faced challenges in obtaining Medicaid or CHIP coverage in a timely manner.

By increasing coverage and access to services prior to release, incarcerated individuals will be better equipped to continue treatment and receive interventions for behavioral health conditions upon returning to the community. The Medicaid Reentry Section 1115 Demonstration Opportunity allows states to cover specific services not typically included in Medicaid and CHIP up to 90 days before an individual’s expected release from incarceration.

CMS is collaborating with other states to explore additional Medicaid Reentry Section 1115 demonstration requests, as part of ongoing efforts to enhance healthcare support for individuals transitioning out of incarceration.