AHA Supports CMS Decision to Rescind, Delay Medicaid Rules

In two letters to CMS, the American Hospital Association said it was pleased that the agency decided to rescind its final rule changing Medicaid policy for federal reimbursement of Medicaid hospital outpatient services and “applauded” CMS’ proposal to delay until July 1, 2010, enforcement of changes to the standards for determining a hold harmless arrangement for Medicaid providers, according to an AHA news release.

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The changes to reimbursement for Medicaid outpatient services were designed to bring Medicaid rates closer to that of Medicare patients and would have “resulted in cuts in payments to hospitals and reduced access for Medicaid beneficiaries,” according to the release. The letter (pdf) notes that Medicaid services a largely pediatric population, whereas Medicare services a largely elderly population.

In a separate letter (pdf), the AHA also recommends that CMS permanently withdraw its proposed changes to the standards for determining a hold harmless arrangement contained in its Medicaid provider tax final rule.

Read the AHA release about CMS’ decision regarding Medicaid rules.

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