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Statement on Medicaid Managed Care Final Rule


Statement attributable to:
Bruce Siegel, MD, MPH
President and CEO
America’s Essential Hospitals

WASHINGTON, DC—While we are disappointed the final Medicaid managed care rule prohibits states from making pass-through payments to providers through health plans, we are pleased the Centers for Medicare & Medicaid Services (CMS) will give hospitals 10 years to transition to this challenging policy change.

We thank the agency for recognizing the potential for this policy to adversely affect vulnerable patients and the essential hospitals on which they rely. CMS is correct to note that in today’s funding environment, “pass-through payments have served as a critical source of support for safety net providers who provide care to Medicaid beneficiaries.”

As the agency also notes—and we strongly agree—an “abrupt end” to these payments would significantly disrupt care by essential hospitals and other providers who serve Medicaid managed care enrollees. We applaud the transition period and the additional flexibility CMS has given states to ensure adequate support reaches essential hospitals and their patients.

We look forward to continuing to work with the agency on policies that ensure the nation’s vulnerable patients can access high-quality, affordable, and equitable care.

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Carl Graziano


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