A Demonstration/Pilot Program, according to the Centers for Medicare and Medicaid (CMS) is defined as:
Special projects that test improvements in Medicare coverage, payment, and quality of care. Some follow Medicare Advantage rules, but others don’t. Demonstrations are usually for a specific group of people and/or are offered only in specific areas. There are also pilot programs for people with multiple chronic illnesses designed to reduce health risks, improve quality of life, and provide savings.
(source: Medicare.gov)