Minnesota is seeking federal approval to participate in the CMS Reentry Services Demonstration, a program that allows state Medicaid programs to cover behavioral healthcare services and chronic disease care for incarcerated people up to 90 days before release, according to a June 29 news release from the state’s Department of Human Services.
Here are four things to know:
- The first phase will involve eight sites: three state correctional facilities — in Faribault, Shakopee and Stillwater — four county jails in Hennepin, Scott, Stearns and Wright counties, and one Tribal detention center, the Red Lake Detention Center.
- The Minnesota Department of Human Services is distributing $2.5 million in grant funding to help participating sites build operational, clinical and technical capacity — including staff training, provider enrollment and Medicaid billing infrastructure.
- Pre-release services could begin at the selected sites in early 2028 pending federal approval, with a planned statewide expansion following an initial evaluation. The Minnesota Legislature and Gov. Tim Walz recently extended post-release coverage to six months, beyond the demonstration’s standard 60-day pre-release window.
- Currently, 18 states operate Medicaid reentry demonstrations. According to the White House Council on Economic Affairs, research estimates pre-release behavioral healthcare programs may yield on average $1.47 to $5.27 in savings per taxpayer dollar.
At the Becker's Fall Behavioral Health Summit, taking place November 4–5 in Chicago, behavioral health leaders and executives will explore strategies for expanding access to care, integrating services, addressing workforce challenges and leveraging innovation to improve outcomes across the behavioral health continuum. Apply for complimentary registration now.
