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HHS Finalizes Rule on Intergovernmental Transfer (January 12, 2001)

On Friday, January 12th, the Department of Health and Human Services (HHS) published a final regulation revising Medicaid’s upper payment limit requirements for hospital services, nursing facility services, intermediate care facilities for the mentally retarded and clinic services. The final rule revises existing regulations to prevent states from drawing down increased Medicaid federal financial participation (FFP) and then transferring those funds to the state for other health-related and non-health related spending (known as intergovernmental transfers). Under the final rule, non-State government-owned and privately-owned facilities will now have separate aggregate upper payment limits. State-owned and operated facilities will continue to have a separate upper payment limits. The final rule is effective March 13, 2001. A copy of the final rule is available from the January 12th Federal Register at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2001_register&docid=01-635-filed.  This regulation also falls under he Bush Administrations Regulatory Review Plan, calling for a 60-day implementation delay of all rules published but not in effect as of January 20, 2001.

 

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