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Capitol Correspondence - 02.11.20

Opposition Continues to Grow Against Medicaid Provider Tax Proposal

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Now that the public comment period on the Centers for Medicare and Medicaid Services’ (CMS) proposed Medicaid Fiscal Accountability Regulation (MFAR) has ended, various industry groups are focusing on alternative techniques to voice their opposition to the proposal. Note that ANCOR submitted formal comments on the proposed regulation last week, expressing concerns about the impact the regulation would have on states’ overall Medicaid budgets. Pending CMS reviewing the comments and issuing its final rule, Politico Pulse has reported that:

“Hospitals, nursing homes and other providers are urging state leaders to lobby CMS against a proposed Medicaid rule during this weekend’s National Governors Association meeting, POLITICO’s Renuka Rayasam and Rachel Roubein report.

They argue the rule — which would overhaul how states use certain Medicaid payments to draw down more federal dollars — threatens to roil hospitals’ finances and should be halted.

— NGA has sent a letter to CMS calling on the agency to back off its proposal, dubbed the Medicaid Fiscal Accountability Regulation. Governors of Michigan, New Jersey, Arizona and other states also raised concerns in comment letters.

CMS Administrator Seema Verma disputed the notion the rule would cut Medicaid payments, telling POLITICO the agency is ‘increasing transparency, integrity and clarity, to ensure Medicaid resources serve the best interests of patients.’”

This Modern Healthcare article further elaborates on health care sector and gubernatorial responses to the MFAR regulation, as well as how the proposal interacts with some of the Administration’s other Medicaid proposals.