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  • Washington Highlights

    AAMC Joins Hospital Sign-On Letter on Proposed Changes to Medicaid State-Directed Payments


    Sinead Hunt, Legislative Analyst
    For Media Inquiries

    On Nov. 29, the AAMC joined the American Hospital Association, America’s Essential Hospitals, and others in a sign-on letter to Health and Human Services (HHS) Secretary Xavier Becerra expressing concerns with the Centers for Medicare & Medicaid Services’ (CMS’) recent proposed changes to state-directed payments (SDPs) under Medicaid managed care. The AAMC previously submitted comments to the CMS in response to this proposed rule urging the agency to ensure that Medicaid payment rates are sufficient to support enrollees’ access to care and recommended an alternative definition of an academic medical center for purposes of allocating SDPs [refer to Washington Highlights, June 30]. 

    The letter emphasizes support for the CMS’ proposal to codify the Average Commercial Rate as the upper payment limit for inpatient and outpatient hospital services in the context of SDPs, while expressing concerns about proposed restrictions on states’ use of provider-based funding sources, including provider taxes, to finance these payments. Additionally, the letter emphasized the continuing financial challenges facing hospitals, noting that restrictions upon states’ use of provider-based funding sources to finance SDPs may disproportionately impact access to care for Medicaid enrollees and other historically underserved communities.