The Centers for Medicare and Medicaid Services (CMS) has withdrawn federal approval of the AHCCCS Works Community Engagement Program, a proposed demonstration project under the Section 1115 Waiver to implement work requirements for some adults in order to maintain Medicaid eligibility. CMS had approved the demonstration project on January 18, 2019, however AHCCCS postponed implementation in October, 2019 due to ongoing litigation in other states regarding work requirements, and the subsequent COVID-19 pandemic.
Arizona State Statute 36-2903.09 requires AHCCCS to request waiver approval annually from CMS to implement work requirements and limit benefits to five years.
AHCCCS operates Arizona’s Medicaid program under a Section 1115 Waiver Demonstration which is re-submitted to CMS for approval every five years. The current waiver expires on September 30, 2021. AHCCCS submitted its five-year waiver renewal request to CMS on Dec. 21, 2020 which includes the request to implement the AHCCCS Works program, and is currently in the process of negotiating waiver renewal.