Capitol Correspondence - 02.10.26

CMS Reissues Preliminary Guidance on State-Directed Payments

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On February 2, 2026 the Centers for Medicare & Medicaid Services (CMS) released an updated guidance letter interpreting how Section 71116 of H.R. 1, the budget reconciliation bill that passed in 2025, will apply to Medicaid state-directed payments (SDPs) in managed care.

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