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Association, Other National Groups Urge CMS to Withdraw MFAR

America’s Essential Hospitals, along with the American Health Care Association, Association for Community Affiliated Plans, National Association of Counties, National Governors Association, and U.S. Chamber of Commerce, in an Aug. 11 letter urged the Centers for Medicare & Medicaid Services (CMS) to withdraw the Medicaid Fiscal Accountability Regulation (MFAR) in its entirety.

The organizations detail how the COVID-19 pandemic has impacted the health care and economic landscapes, leading to great uncertainty for providers and states. The impact on state budgets has reduced resources to support state programs, such as Medicaid. At the same time, states already are experiencing increases in Medicaid enrollment as a result of the pandemic.

Given current public health and economic circumstances, providers and states need certainty that the agency will not finalize a rule that would disrupt longstanding Medicaid financing arrangements, impact state budgets, and jeopardize beneficiary access to care. As such, the organizations urge CMS to withdraw the MFAR in its entirety.

CMS issued the proposed MFAR on Nov. 18, 2019, with comments due to the agency on Feb. 1. When issuing the proposed rule, the agency cited concern about lack of transparency and a need to better understand state financing of supplemental payments.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Zina Gontscharow is a former senior policy analyst for America's Essential Hospitals.

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