CMS scraps Medicaid fiscal responsibility rule

CMS has withdrawn its proposed Medicaid Fiscal Accountability Rule, Administrator Seema Verma tweeted Sept. 14

CMS issued the proposed Medicaid Fiscal Accountability Rule last November. The rule aimed to promote transparency and fiscal integrity by establishing new reporting requirements for state supplemental payments to Medicaid providers.

In mid-August, some hospital associations called on CMS to withdraw the rule, arguing that it could exacerbate the challenges hospitals are facing in the U.S.

The hospital associations, including America's Essential Hospitals and the American Health Care Association, argued that finalizing the Medicaid fiscal integrity rule would introduce "unprecedented restrictions on states' ability to fund their share of the Medicaid program" at a time when hospitals are facing challenges and an uncertain future due to the COVID-19 pandemic. 

"We've listened closely to concerns that have been raised by our state and provider partners about potential unintended consequences of the proposed rule, which require further study. Therefore, CMS is withdrawing the rule from the regulatory agenda," Ms. Verma tweeted.

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