CMS officially withdraws $50B threat to Medicaid

MM Curator summary

CMS officially withdrew the Medicaid Financial Accountability Regulation after a year of intense industry protest on the reg that would have changed multiple financing schemes used to maximize federal funding.

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The Centers for Medicare & Medicaid Services has officially withdrawn a controversial Medicaid proposal that providers warned could up to $50 billion from the program annually. 

CMS Administrator Seema Verma announced the move to officially rescind the Medicaid Fiscal Accountability Rule (MFAR) from the federal register on Twitter Thursday afternoon.

In late November, some had feared that CMS would walk back on the decision to withdraw after Verma defended the proposal while speaking with the National Medicaid Directors Association.

“While we support its intent, further work is needed to ensure accountability for states while protecting critical safety-net care for vulnerable patients,” Verma wrote. “While the proposed rule will be withdrawn, I thank Congress for recently enacting new payment transparency requirements which help accomplish our goals.” 

The agency in mid-September announced plans to rescind the MFAR proposal. The decision was cheered soundly by long-term care providers who feared the rule would cripple Medicaid financing in states and jeopardize beneficiaries’ access to care.

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