CMS withdraws guidance on Medicaid block grants from OMB website

CMS has withdrawn proposed guidance on Medicaid block grants and per capita cap programs from the White House Office of Management and Budget website. 

The proposed guidance — which was withdrawn Nov. 15 — related to waivers that would have allowed states to overhaul Medicaid funding through federal block grants. 

With the withdrawal of the proposed guidance, some states that have already shown interest in exploring such waivers, including Tennessee, are waiting on new guidance from CMS.

CMS Administrator Seema Verma announced last week that the federal government will issue new guidance outlining initial opportunities for states to test new Medicaid financing approaches, such as block grant and per capita cap proposals, for certain optional adult populations. 

She did not give a precise timeline but indicated that CMS will issue the guidance soon. 

"You will soon see guidance from us that lays out initial opportunities to test new approaches to delivering and financing care for certain optional adult populations," Ms. Verma told the National Association of Medicaid Directors last week. "The Medicaid Value and Accountability Demonstration won't compromise important beneficiary protections, but it will inject rigorous accountability for outcomes, provide significant and unprecedented flexibilities for program operation, and offer opportunities for shared savings that can be reinvested back into Medicaid."


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