Hospitals urge CMS to withdraw Medicaid fiscal integrity rule

Hospital associations and business groups have called on CMS to withdraw a rule that aims to strengthen the fiscal integrity of the Medicaid program, arguing that it could exacerbate the challenges hospitals are facing in the U.S.

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

The hospital associations argue 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 remain concerned that CMS issued the MFAR without any meaningful analysis of its impact on states, providers, and most important, Medicaid beneficiaries," the organizations wrote in a letter. "The cursory regulatory impact analysis vastly understates the effects of the proposed rule. While we acknowledge the difficulties in precisely estimating the financial impact, that fact alone is reason enough to withdraw the MFAR." 

The organizations that signed the letter include America's Essential Hospitals; the American Health Care Association; Association for Community Affiliated plans; the National Governors Association; U.S. Chamber of Commerce and National Association of Counties.

Read more about the proposed rule here

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