Today, the Centers for Medicare & Medicaid Services (CMS) approved a new section 1115 demonstration for the State of Arkansas titled “Arkansas Opportunities to Test Transition-Related Strategies to Support Community Reentry from Incarceration and Institutions for Mental Disease.”  This new section 1115 demonstration allows the state to receive federal financial participation (FFP) for Medicaid state plan services provided to adult beneficiaries who are in institutions for mental disease (IMD) for substance use disorder (SUD) or serious mental illness (SMI) treatment.

This demonstration is effective July 22, 2025 through June 30, 2030. Today’s approval and other administrative documents can be found on the Medicaid.gov demonstration page.