Allows Clinical Coverage Policy (CCP) 8A Substance Abuse Demonstration (SUD) Flexibilities.

Brings state into compliance with third party liability requirements to apply cost avoidance procedures to claims for prenatal services, to make payments to pediatric preventive services without regard to third party liability, and to make payment without regard to third party liability for up to 100 days for claims for child support enforcement to beneficiaries.

Eliminates the state-only supplemental payments to certain beneficiaries for Assisted Living costs, also known as Category F payments.

Adds a nursing facilities and home and community-based services (HCBS) provider wage add-on incentive to support retention of trained staff of nursing facilities and HCBS providers.

CMS is approving this time-limited state plan amendment (SPA) to respond to the COVID-19 national emergency. The purpose of this amendment is to allow for hospitals to be reimbursed for nursing facility level of care in cases where the hospital is unable to find a nursing facility placement effective 12/1/21.