CMS releases updated guidance to states on federal financing for emergency Medicaid services 

Oct 02, 2025 - 03:01 PM
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The Centers for Medicare & Medicaid Services Sept. 30 released guidance to states clarifying its interpretation of a provision that authorizes federal financing to pay for emergency Medicaid services for undocumented patients ineligible for full Medicaid benefits. CMS said federal financing is available only “for care and services necessary for the treatment of an emergency medical condition actually furnished (i.e., rendered)” and that Medicaid managed care payments, including risk-based capitation payments, do not qualify for federal financing as emergency Medicaid services. States can still cover such services through fee-for-service Medicaid or through certain non-risk managed care contracts. States will have one year from the guidance’s publication date to become compliant.

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