Section 1115 of the Social Security Act gives the secretary of Health and Human Services authority to approve experimental, pilot, or demonstration projects that promote the objectives of the Medicaid and CHIP programs. The waivers give States flexibility to design and improve their Medicaid and CHIP programs. See a list of waivers by state.
With states thinking about using Medicaid expansion dollars to purchase private health coverage for low income people, this paper from the Kaiser Family Foundation explores how this version of “premium” assistance works under the current law.
FAQ on premium assistance/private plans in Medicaid from the Department of Health and Human Services.