Statement:

Proposed OPPS Rule from CMS

Coalition Shares Concerns with Value-Based Care Provisions in Medicaid SDP Rule

July 21, 2026
Julie Kozminski

America’s Essential Hospitals joined a coalition of health care organizations to express concerns about value-based care provisions in the Medicaid state directed payments rule in a July 21 letter to the Centers for Medicare & Medicaid Services (CMS). The coalition includes 24 organizations committed to aligning Medicaid payment policies with value for patients.

The letter discusses how the proposed rule’s overly prescriptive application of Medicare-based limits will interfere with state efforts to advance value-based payment models that are tailored to Medicaid beneficiaries’ unique needs. We ask CMS to preserve state and managed care organization flexibility, align Medicare-based payment limits with the process used in Medicaid fee-for-service, and refrain from limiting services not required by statute.

The following organizations have signed onto this letter:

  • Alliance of Community Health Plans
  • American Academy of Family Physicians
  • American Medical Group Association
  • American Nurses Association
  • America’s Essential Hospitals
  • America’s Physician Groups
  • Association for Clinicians for the Underserved 
  • Association for Community Affiliated Plans
  • Association of American Medical Colleges
  • Catholic Health Association
  • Children’s Hospital Association
  • First Focus on Children
  • Health Care Transformation Task Force
  • Leading Age
  • Medicaid Group Management Association
  • National Association for Behavioral Health
  • National Association of Community Health Centers
  • National Association of Pediatric Nurse Practitioners
  • National Council for Mental Wellbeing
  • National Healthcare for the Homeless Council
  • National Rural Health Association
  • Primary Care Collaborative
  • Society of General Internal Medicine
  • Vizient, Inc.

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.