States urge CMS to suspend Medicaid Fiscal Accountability Rule

The National Association of Medicaid Directors yesterday asked the Centers for Medicare & Medicaid Services to suspend finalizing the Medicaid Fiscal Accountability Rule while states respond to the COVID-19 pandemic and its impact on state budgets.

“Significant reductions to state general revenues are forcing difficult budgetary decisions across state governments, including within Medicaid,” the organization wrote. “In this environment, states need assurances that all existing financial tools will be available to weather what is expected to be a significant and years-long economic downturn. MFAR would remove these assurances and exacerbate these already substantial fiscal challenges.”

AHA and others have urged CMS to withdraw the proposed rule, saying it would “severely curtail the availability of health care services to millions of individuals” and “many of its provisions are not legally permissible.”