The Centers for Medicare & Medicaid Services (CMS) has announced the Healthy Adult Opportunity (HAO) optional demonstration initiative. The HAO initiative will allow states to carry out demonstrations under section 1115(a)(2) of the Social Security Act (the Act) to provide coverage using flexible benefit designs under either an aggregate or per-capita cap financing model for certain populations without being required to comply with a list of Medicaid provisions identified by CMS. For more information, please see the CMS HAO Fact Sheet.