CMS withdraws proposed Medicaid Fiscal Responsibility Regulation

As urged by the AHA, the Centers for Medicare & Medicaid Services yesterday officially withdrew a proposed rule intended to increase oversight and transparency in Medicaid supplemental payment programs, including Disproportionate Share Hospital payments, and how states finance these programs.

CMS Administrator Seema Verma in September said the agency would remove the rule from the administration’s regulatory agenda, an action that was praised by the AHA, which had expressed concern the rule would cripple state financing and limit access to care, especially in rural and underserved areas.