AHA voices 'deep concern' in restricting provider-based Medicaid funds

Along with seven other national organizations, the American Hospital Association is raising concerns about certain CMS Medicaid policy proposals that could harm state access to provider-based funding sources.

In a Nov. 29 letter to HHS Secretary Xavier Becerra, the organizations detailed how hospitals have played a key role in state Medicaid program finances, and as pandemic pain points continue to be felt across the healthcare industry, it's important to ensure state Medicaid programs aren't faced with additional stressors. 

Throwing initial support behind CMS, the letter commended their dedication to improving Medicaid beneficiary care access and ensuring providers are given necessary beneficiary care resources. Additionally, the letter backed CMS' proposal to use the average commercial rate as the upper payment limit for both inpatient and outpatient hospital services regarding state-directed payments.

The letter also addressed additional proposals that could harm state financing options. "We are deeply concerned with CMS' proposed restrictions on states' use of provider-based funding sources, such as provider taxes, to finance Medicaid payments," the letter stated. "We are also concerned about CMS's proposed alternatives to artificially limit the growth in SDPs, particularly for hospital-based SDPs."

Requesting that CMS not act on its proposed state restrictions for provider-based funding sources, the letter also proposed working together with the organizations to ensure proper access and care for Medicaid patients.  

The seven additional organizations backing AHA's letter:

- America's Essential Hospitals

- Association of American Medical Colleges

- Catholic Health Association of the United States

- Children's Hospital Association

- Federation of American Hospitals

- National Association for Behavioral Healthcare

- Vizient

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