Statement:

House Vote to Pass the Budget Resolution

CMS Rescinds Guidance on Medicaid Coverage of Health-Related Social Needs

March 10, 2025
Julie Kozminski

In a March 4 informational bulletin, the Centers for Medicare & Medicaid Services (CMS) rescinds two bulletins on Medicaid coverage of health-related social needs (HRSNs). This policy change does not apply to existing HRSN programs Medicaid covers, but it will affect CMS’ review of future state requests.   

The guidance that CMS rescinded described opportunities for states to cover HRSNs through Section 1115 demonstrations and other Medicaid authorities. CMS issued its first bulletin on HRSNs on Nov. 16, 2023, and provided additional updates in a December 2024 bulletin.  

According to the Kaiser Family Foundation, as of Feb. 7, 25 states have received approval for Section 1115 demonstrations that include HRSN coverage. These include 24 states providing housing support, 12 states providing nutrition support, 11 providing medical respite, and eight providing employment support. Although the new policy does not rescind these existing approvals, it might affect the ability of these states to renew these coverage policies. Section 1115 demonstrations must be renewed at least once every five years. 

CMS notes that it still will consider state requests for Medicaid coverage of HRSNs on a case-by-case basis to determine whether they comply with other federal requirements.  

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.

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