CMS wants to lift rule mandating Medicaid plans track fee-for-service payments

CMS filed a proposal July 11 to eliminate a rule that requires state Medicaid plans to record their fee-for-service payments.

The proposal, signed by HHS Secretary Alex Azar and CMS Administrator Seema Verma, aims to remove regulatory text that requires states to document whether fee-for-service Medicaid payments are sufficient to pay providers and ensure care is accessible to patients.

CMS said the proposal comes after states raised concerns about the 2015 regulation's administrative burden.   

"While we believe the process described in the current regulatory text is a valuable tool for states to use to demonstrate the sufficiency of provider payment rates, we believe mandating states to collect the specific information as described excessively constrains state freedom to administer the program in the manner that is best for the state and Medicaid beneficiaries in the state," CMS said. 

The agency is accepting comments for 60 days after the proposed rule is published in the federal register July 15.

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