CMS Releases Guidance for New Medicaid 1115 Re-Entry Waivers. On April 17, the Center for Medicaid and CHIP Services released a State Medicaid Director Letter to encourage states to apply for a new Medicaid Reentry Section 1115 Demonstration Opportunity to help increase care for individuals who are incarcerated in the period immediately prior to their release to help them succeed and thrive as they reenter their communities. The new demonstration opportunity would allow state Medicaid programs to cover health services including substance use disorders and other chronic health conditions. Read the full letter for more information on the demonstration opportunity.