Requires the state health care authority to submit a demonstration waiver request under section 1115 of the social security act to the federal centers for medicare and medicaid services.

Requires the waiver request to be designed to achieve the broadest federal financial participation and, to the extent permitted under federal law, shall authorize: (1) Eliminating the three-month retroactive coverage benefit for applicants, other than pregnant women and children under one year old, for medical benefits under the social security act;

(2) Establishing a work requirement for able-bodied adults ages nineteen through sixty-four without dependents; and

(3) The development of an alternative payment methodology for federally qualified health centers that enables capitated or global payment of enhanced payments.