AHA comments to CMS on proposed rule covering Medicaid supplemental payments

Jul 21, 2026 - 04:47 PM
aha-medicaid-data-900x400

The AHA provided comments July 21 to the Centers for Medicare & Medicaid Services on its proposed rule to modify policies governing Medicaid state-directed payments as authorized under the July 2025 reconciliation bill. The rule also includes proposals that are beyond what the statute requires, such as new limits on certain targeted fee-for-service payments and other SDP service types, as well as new limitations on SDP design. The AHA said that CMS’ projection of a $510.1 billion reduction in payments over 10 years well exceeds the Congressional Budget Office’s estimate of $149.4 billion over 10 years, and would greatly reduce access to care, exacerbate workforce challenges, and impact hospital and health system financial viability if proposed changes in the rule are enacted. The AHA urged CMS to rescind proposals that exceed statutory requirements and to lessen the financial impact of the reduction of SDPs to Medicare levels. 

Related News Articles

Headline
Court strikes ‘medically frail’ definition in Medicaid community engagement requirements 
The U.S. District Court for the District of Massachusetts yesterday ruled in favor of 25 states and the District of Columbia to vacate the Centers for Medicare…
Headline
Study: Extending Medicaid coverage 12 months increased use of postpartum care for mothers with pregnancy complications 
Extending Medicaid coverage by 12 months following childbirth increased use of postpartum care among mothers with pregnancy complications such as diabetes and…
Headline
HHS clarifies when state Medicaid agencies can use patient SUD records to verify exemption from community engagement requirements
The Department of Health and Human Services Office for Civil Rights released new guidance on statutory and regulatory requirements under 42 CFR Part 2, which…
Headline
CMS launches outcomes-driven quality measurement initiative for states 
The Centers for Medicare & Medicaid Services Sept. 25 announced the launch of a new initiative measuring quality in Medicaid and the Children’s Health…
Headline
AHA recommends changes to CMS’ Medicaid provider tax proposed rule
The AHA commented Sept. 21 on the Centers for Medicare & Medicaid Services’ proposed rule to implement the changes to Medicaid provider tax policies that…
Headline
AHA requests CMS reconsider provisions within Medicaid community engagement rule
The AHA July 31 provided comments to the Centers for Medicare & Medicaid Services on its interim final rule on Medicaid community engagement requirements.…