Medicaid Fiscal Accountability Rule Rescinded, Protecting Significant Funding

Posted on September 18, 2020

The Centers for Medicare & Medicaid Services (CMS) announced Sept. 14 it will rescind the Medicaid Fiscal Accountability Rule (MFAR), which threatened to cut hundreds of millions of dollars of Medicaid funding in Michigan alone. This rule would have had a significant negative financial impact on healthcare providers. Nationally, hospitals specifically could have seen reductions in Medicaid payments of $23 billion to $31 billion annually, representing 12.8% to 16.9% of total hospital program payments. Fighting MFAR has been a key priority for the MHA and American Hospital Association (AHA).

The CMS’ decision to rescind MFAR is a result of the continued MHA and AHA advocacy and education of federal officials on this issue, including considerable member engagement. This development is even more critical given the impact COVID-19 continues to have on state budgets and the financial health of hospitals and health systems. The MHA will notify members once the rescinded rule is made official via publication in the Federal Register. For more information, contact Laura Appel at the MHA.

Tags: Centers for Medicare & Medicaid Services, Laura Appel, Medicaid Fiscal Accountability Rule

Posted in: Member News, Top Issues - Healthcare

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