CMS launched the Medicaid directed payments program in 2016, which allows states to direct Medicaid managed care programs to pay providers according to specific rates or methods.
In 2020, states received more than $25 billion from directed payments.
Though directed payments can bring more cash to hospitals, it is not clear if these programs are improving access or quality of care, Government Accountability Office and Medicaid and CHIP Payment and Access Commission officials have said.
A Medicaid and CHIP Payment and Access Commission report found less than one in four directed payment plans running for more than a year had evaluations available.
A CMS spokesperson told Kaiser Health News the agency is working with federal partners to improve oversight and transparency of directed payments.
Read more here.
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