With the demise of health care reform at the national level, much of t
he attention has shifted to state-level efforts. Recently, several sta
tes have begun looking to the Medicaid program as a way to solve their
health care problems, A principal way in which states are implementin
g health care reform is through the Section 1115 research and demonstr
ation Medicaid waiver program. The 1115 waiver authority provides stat
es considerable flexibility to restructure their Medicaid programs to
offer health care to new populations and thus has great potential for
covering large segments of the uninsured population. While it shows gr
eat promise, however, there are many obstacles states must overcome bo
th in implementing and in maintaining an 1115 program.