Today Gov. Jay Inslee announced Washington State has reached a preliminary agreement in principle with the federal government on a Medicaid Transformation demonstration waiver.

The Medicaid Transformation demonstration is intended to improve the health of Washingtonians by focusing on prevention and proactive management for health conditions such as diabetes, cardiovascular disease, obesity, and mental illness. This five-year, $1.5 billion demonstration will also accelerate reforms that pay providers for better health outcomes.

During the coming months, we will be negotiating special terms and conditions (STCs), the actual contract for the waiver, with CMS. Throughout negotiations, we will continue to keep our partners and stakeholders informed.