What is the 1115 Re-entry Demonstration?

Beginning In 2023, the Centers for Medicare & Medicaid Services (CMS) developed new guidance that allows for states to provide reimbursement for certain Medicaid-covered services that treat behavioral health and chronic medical conditions for up to 90 days before release for people who are incarcerated. This initiative is called the 1115 Re-entry Services Demonstration.

The Minnesota Department of Human Services is in the process of seeking CMS approval to participate in this demonstration. The first phase will involve three state prisons, four county jails, and one Tribal detention center. The Department of Human Services is working closely with the Minnesota Department of Corrections to implement this first phase.

Pre-release services will include the assessment and treatment of substance use disorder (SUD), mental health, and complex medical conditions. Following release, individuals will receive services for an additional 90 days, and case managers will help ensure individuals continue to have health care coverage once the 90-day period is over.

Who is eligible?

During the first phase, only people who are incarcerated at select facilities will be eligible for 1115 Re-entry Demonstration services. In addition, eligible participants must meet general Medicaid eligibility requirements. Minnesota is in the final stages of selecting sites for the first phase of this demonstration.

Will this initiative expand statewide?

Minnesota plans to expand the initiative statewide following a thorough evaluation of the first phase. During the first phase, however, only individuals at the selected sites will be screened for participation.

Why is this initiative needed?

Many people who are incarcerated have untreated mental health and substance use disorders. Providing care before release addresses an unmet clinical need and potentially reduces preventable deaths. It also substantially lowers short-term re-arrest and re-incarceration risks.

Continuity of health care increases the likelihood of stable housing, employment, and social support after release — factors that improve public safety and long-term outcomes for communities.

Services that connect people to care at re-entry can reduce future taxpayer dollars being spent on justice-involved and emergency-care spending. When people are treating their mental health and substance use disorders, communities as a whole experience fewer arrests, fewer emergency department visits, fewer in-patient admissions, shifting costs away from higher-cost systems.

On average, pre-release programs that address a person’s mental health or substance abuse problems may reduce the cost of crime and long-run incarceration costs by $1.47 to $5.27 per taxpayer dollar, according to the White House’s Council on Economic Affairs.

When will eligible participants begin receiving services?

DHS is waiting to receive final approval from CMS on the 1115 re-entry waiver. Pending approval, people incarcerated at the sites selected for the first phase could begin receiving pre-release services as early as January 2027.

Will there be opportunities for public input on this initiative?

Since December 2024, a re-entry services working group has been meeting to consider ways to improve the launch of this initiative and related policies for justice-involved individuals.

DHS and DOC will begin working closely with the sites selected for the first phase (once approved) and community partners to develop an implementation plan. In the coming months, DHS and DOC will communicate upcoming opportunities to provide input on the implementation plan and overall project design.

The Minnesota Department of Human Services is committed to hearing all voices when it comes to the design and implementation of the 1115 re-entry waiver. Throughout the process, the state will prioritize voices of people with lived experience, both with mental health and SUD, and with the criminal justice system. This will be achieved through surveys, town halls and other opportunities for engagement that will be announced in the coming months.

How is progress being tracked?

The Centers for Medicare and Medicaid Services require states to meet a set of defined milestones as part of their implementation plan. The demonstration is focused on strengthening coverage, services, continuity of care, connections to community resources, and collaboration across systems. This webpage will provide updates on the state’s progress towards milestones in the implementation plan.

 

Resources for participants and families

Resources for providers

Resources for participating correctional settings