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CMS Withdraws Proposed Medicaid Rule

September 18, 2020

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CONTACTS
Jason Kleinman, Senior Legislative Analyst, Govt. Relations

Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma announced on Sept. 14 that the agency is withdrawing the proposed Medicaid Fiscal Accountability Regulation (MFAR).

“We’ve listened closely to concerns that have been raised by our state and provider partners about potential unintended consequences of the proposed rule, which require further study. Therefore, CMS is withdrawing the rule from the regulatory agenda,” Verma said in a statement posted on Twitter.

The AAMC previously submitted comments opposing the proposal, which would have significantly changed state Medicaid program financing and dramatically reduced supplemental payments for providers [see Washington Highlights, Jan. 31].

Following Verma’s announcement, AAMC President and CEO David Skorton, MD, said in a statement, “The AAMC appreciates yesterday’s announcement from CMS to withdraw the proposed Medicaid Fiscal Accountability Regulation (MFAR). The MFAR rule would have unnecessarily and unreasonably added significant burden on states and localities to fund their Medicaid programs and ensure access to patients, particularly during the current public health crisis. We would like to thank CMS Administrator Seema Verma for her willingness to engage with stakeholders on this issue in response to the concerns raised by this proposal regarding the consequences for patients.”

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