Section 456.506 - Waiver options for Medicaid agency(a) The agency may apply for a waiver at any time it has the procedures referred to under § 456.505(b) in operation at least-(1) On a demonstration basis; or(2) In any part of the State.(b) Any hospital or mental hospital participating under the plan that is not covered by a waiver must continue to meet all the UR plan requirements under subpart C or D of this part.43 FR 45266, Sept. 29, 1978, as amended at 61 FR 38399, July 24, 1996