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CMS is axing its proposed Medicaid Fiscal Accountability Rule, agency head Seema Verma announced via Twitter late Monday afternoon, in a move quickly cheered by provider organizations.
The rule proposed last year would have increased federal oversight of how states fund their Medicaid programs and potentially have resulted in funding cuts for the cash-strapped safety net insurance scheme. Myriad providers, patient advocacy groups and lawmakers in both states and the halls of Congress opposed the rule as a result.
“We’ve listened closely to concerns that have been raised by our state and provider partners about potential unintended consequences of the proposed rule, which require further study. Therefore, CMS is withdrawing the rule from the regulatory agenda,” Verma said.
MFAR was designed to increase fiscal transparency in the 55-year-old Medicaid program, but was quickly met with a firestorm of controversy, with even bipartisan House and Senate members raising concerns it could lead to states being forced to choose between program cuts or raising taxes to replace the lost funding.One estimate, conducted by Manatt Health on behalf of the American Hospital Association, estimated the changes proposed in the rule would cut Medicaid funding by almost […]
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