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Delivery System Reform Incentive Payment Program

About the 1115 Waiver

The Medicaid 1115 Waiver is a federal government program for healthcare facilities and care providers that run programs supporting Centers for Medicare and Medicaid Services (CMS) Triple Aim goal.

In December 2011, the Texas Legislature approved the Waiver based on a partnership between Texas Health and Human Services Commission (HHSC) and CMS. Enactment of Section 1115 of the Social Security Act allows Texas to expand existing Medicaid managed care programs and reimburse hospitals for certain uncompensated care; it also provides an avenue to test and receive federal matching funds for experimental, pilot or demonstration projects typically not covered by Medicaid. The Waiver also redirected the Upper Payment Limit supplemental payments into the Waiver's two subpools - Uncompensated Care and DSRIP - worth $29 billion in funding via local and federal match monies.

The Waiver is a five year (demonstration year)program from October 2011 through September 2016.