FOR IMMEDIATE RELEASE
Statement attributable to:
Bruce Siegel, MD, MPH
President and CEO
America’s Essential Hospitals
WASHINGTON — We thank the Centers for Medicare & Medicaid Services for standing by its plan to permit states to set Medicaid managed care payment rates at levels equal to those paid by commercial plans to providers of the same service.
The average commercial rate represents fair market value for services essential hospitals provide. For too long, care provided to Medicaid beneficiaries has been undervalued. Allowing managed care plans to pay providers average commercial rates takes an important step toward ending these historical inequities.
But we are deeply concerned by CMS’ surprise reversal of its long-standing policy to allow states to separately fund payments targeted at essential hospitals and other provider classes. Instead, the agency will require states to combine these targeted payments into general managed care funding, which creates troubling disincentives for plans to direct patients away from essential hospitals.
Because Medicaid payments are jointly financed by states and the federal government, it is important that states continue to use all permissible sources of Medicaid financing, including provider taxes. Although we disagree with CMS’ proposed reinterpretation of current provider tax rules, we appreciate its decision to delay the new financing attestation requirement until 2028.
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About America’s Essential Hospitals
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to equitable, high-quality care for all, including those who face social and financial barriers to care. Since 1981, America’s Essential Hospitals has advanced policies and programs that promote health, health care access, and equity. We support our more than 300 members with advocacy, policy development, research, education, and leadership development. Communities depend on essential hospitals for care across the continuum, health care workforce training, research, public health and health equity, and other services. Essential hospitals innovate and adapt to lead all of health care toward better outcomes and value. Learn more at https://essentialhospitals.org.
Contact:
Carl Graziano
cgraziano@essentialhospitals.org
202.585.0102