In a Sept. 9 dear colleague letter, the Centers for Medicare & Medicaid Services provides preliminary guidance on changes to state directed payments (SDPs) stemming from H.R. 1. The law requires the gradual reduction of SDPs to Medicare payment rates beginning in 2028.
The letter provides guidance on the grandfathering period, preprint status criteria, a definition of a completed preprint, and limits for grandfathered SDPs. The guidance aims to aid state planning efforts until a final rule is promulgated.
America’s Essential Hospitals will provide members with a briefing on the letter shortly.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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