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Demonstrating Community Engagement at Renewal (section 1902(xx)(1)(B) and (4) of the Act)............................................................................................................. 7 Using Reliable Information (section 1902(xx)(5) of the Act) ................................... 8 VII. Procedures in the Case of Non-Compliance (section 1902(xx)(6) of the Act) ................ 9 How Non-Compliance Affects Certain FMAP Increases and Premium Tax Credit Eligibility (section 1902(xx)(7) of the Act) ............................................................... 9 Certain FMAP Increases (section 1902(xx)(7)(A) of the Act) ........................... 9 Premium Tax Credit Eligibility (section 1902(xx)(7)(B) of the Act) ................ 9 VIII. Outreach to Applicable Individuals (section 1902(xx)(8) of the Act) ............................. 9 IX. Managed Care Plan Role (WFTC legislation Section 71119(c)) ................................... 10 X. Timeline for Implementation, and Temporary Exemption for Good Faith Effort (Section 1902(xx)(1) and (11) of the Act) ................................................................................... 10 XI. Financial Resources for States ....................................................................................... 11 Government Efficiency Grants to States (WFTC legislation Section 71119(e)) ..... 11 Medicaid Information Technology (IT) System Costs ............................................ 11 XII. Closing ........................................................................................................................... 12 Appendix: State Options for Initial Community Engagement Beneficiary Outreach and Compliance Review Periods at Application .............................................................................. 13 III. Overview The purpose of this Center for Medicaid and CHIP Services (CMCS) Informational Bulletin (CIB) is to provide an overview of the Medicaid-related “community engagement” requirement mandated by section 71119 of subchapter D of chapter 1 of subtitle B of title VII of the WFTC legislation (“section 71119”). Implementation of community engagement requirements will necessitate system, policy, and operational changes to state programs in the coming years. CMS is committed to supporting states in this effort and anticipates that ongoing partnership and engagement with states and other stakeholders will inform areas of need for additional guidance, including rulemaking by June 2026. However, we recognize that planning must begin now, as states enter budget and legislative sessions and begin procurement of new systems and services to support implementation of the Medicaid provisions in the WFTC legislation. It is important to note that community engagement is not new to the Medicaid program. Multiple states submitted new section 1115 demonstration requests, prior to the passage of the WFTC legislation, to implement a community engagement program.