The Substance Use Disorder (SUD) waiver was first approved by the Centers for Medicare & Medicaid Services (CMS) on Aug. 16, 2019, and is effective from July 1, 2019, through June 30, 2025. The SUD waiver is authorized under section 1115 of the Social Security Act as a demonstration waiver.
DHS submitted an extension request to CMS on Dec. 21, 2023, to continue the waiver for a five-year period beginning July 1, 2024. On May 30, 2024, CMS provided a temporary extension that continued the operational terms of the waiver through June 30, 2025. On June 18, 2025, CMS provided a second temporary extension through Sept. 30, 2025. On Sept. 18, 2025, CMS provided a third temporary extension through Oct. 31, 2025. The temporary extension of the waiver does not impact people receiving services or providers. DHS anticipates that CMS will complete its review of the waiver extension request (submitted in December 2023) during the third temporary extension period.
This demonstration project is an important component of the state’s larger reform effort to address the opioid crisis as well as transform the health care delivery system for Medicaid members who need substance use disorder treatment. The waiver authorizes federal Medicaid matching funds for residential programs that have been determined as Institutions for Mental Diseases. The demonstration waiver tests the impact of evidence-based provider referral arrangements and practices on improving health outcomes for Medicaid members with substance use conditions.
SUD Waiver Documents and Reports
Section 1115 waivers require DHS to submit monitoring and evaluation reports to CMS. These and other waiver requirements are in the special terms and conditions provided by CMS, and are specific to each section 1115 waiver. The special terms and conditions specify the additional requirements and timelines for deliverables the state must meet.
Design Plans and Evaluation Reports
Quarterly and Annual Reports
DHS posts reports as they are approved by CMS.
SUD Demonstration Year 1 (July 1, 2019-June 30, 2020)
SUD Demonstration Year 2 (July 1, 2020-June 30, 2021)
SUD Demonstration Year 3 (July 1, 2021 - June 30, 2022)
SUD Demonstration Year 4 (July 1, 2022 - June 30, 2023)
SUD Demonstration Year 5 (July 1, 2023 - June 30, 2024)
SUD Demonstration Year 6 (July 1, 2024 - June 30, 2025)