The regulatory freeze could affect rules directing health clinics to pass certain drug discounts on to patients, establishing minimum standards in Medicaid state drug utilization review, and modifying Health Insurance Portability and Accountability Act privacy arrangements.

In mid-September, CMS Administrator Seema Verma withdrew the Medicaid Fiscal Accountability Regulation (MFAR) via a tweet, citing stakeholder concerns. America's Essential Hospitals asserts formally withdrawing MFAR would be the best course of action both for CMS and stakeholders.

America's Essential Hospitals, along with five other national associations, calls for withdrawal of the proposed Medicaid Fiscal Accountability Regulation. In a letter, the groups note that the rule, if finalized, would exacerbate public health and economic uncertainty resulting from the pandemic.

Republicans and Democrats have yet to make progress in negotiations on the next COVID-19 bill; the association shared essential hospital priorities with congressional leadership. A new House bill would ensure hospitals in the 340B Drug Pricing Program will not lose eligibility during the pandemic.

The highly anticipated bill would add $25 billion to the Provider Relief Fund and extend Medicare telehealth flexibility. It would not block the Medicaid Fiscal Accountability Regulation or delay the Medicaid disproportionate share hospital payment cut scheduled for Dec. 1.

In a letter, America's Essential Hospitals urged the agency to reopen the comment period for the Medicaid Fiscal Accountability Regulation to allow stakeholders to address the proposed rule's impact, as the COVID-19 pandemic has fundamentally altered the health care and economic landscapes.

The March 20 letter details additional action needed to support essential hospitals as they respond to the pandemic. The letter also explains how essential hospitals face significant financial challenges as they work on the front lines of public health threats.

After two failed votes, senators continue negotiations on a $1.6 trillion funding package to boost the economy and improve access to care during the COVID-19 pandemic. Meanwhile, House Democratic leadership unveiled competing legislation to provide relief.

Congressional leaders are holding several hearings to inform their COVID-19 response and negotiating legislation that could provide up to $8 billion in emergency supplemental funding to respond to the outbreak.

In a new Modern Healthcare commentary, association President and CEO Bruce Siegel explains that the proposed Medicaid Fiscal Accountability Regulation would do more to shrink Medicaid than to contribute to program integrity and transparency.

HHS Secretary Alex Azar will discuss the president's proposed fiscal year 2021 budget at several congressional hearings. A bipartisan Senate letter calls for incorporating social determinants into star ratings. A new association work group focuses on the Medicaid Fiscal Accountability Regulation.

Administrator Verma writes that provisions of the Medicaid Fiscal Accountability Regulation are meant to ensure transparent and lawful use of taxpayer resources to fund Medicaid. She contends that nothing in the proposal is meant to reduce Medicaid funding or prohibit supplemental payments.

In its bipartisan proposal on surprise medical bills, the House Committee on Ways and Means would preserve the ability of providers and health plans to negotiate the payment rate for out-of-network care. Also, the president releases his FY 2021 budget plan, including $920 billion in Medicaid cuts.

In its submitted comments, the association outlines overarching and specific problems that necessitate withdrawal of the rule to protect the stability and viability of the Medicaid program.

America's Essential Hospitals encourages members to share their concerns about the Medicaid Fiscal Accountability Regulation with Congress and CMS. Meanwhile, the House returns to health care business after a one-week recess, and the Senate impeachment trial continues.

The proposed Medicaid Fiscal Accountability Regulation would sharply curtail flexibility states now have to finance and structure Medicaid to serve vulnerable people. Congress must step in immediately and demand that CMS withdraw this damaging rule in its entirety.