The Medicaid and CHIP Payment and Access Commission (MACPAC) met March 1 to discuss the role of supplemental payments to hospitals. MACPAC is beginning its work to analyze Medicaid’s hospital payment policy, considering all types of Medicaid payment to hospitals. The Commission plans to evaluate whether payment policies are consistent with efficiency, economy, quality and access for Medicaid beneficiaries. Staff noted that supplemental payments are used to offset low Medicaid base payment rates (Medicaid shortfall) and these payments are not tied to specific services. Commissioners felt that this was a point that should be further investigated.