CMS issued a proposed rule July 10 to eliminate regulatory text from 2014 that allows states to reassign Medicaid payments to third parties on behalf of an individual provider, according to the proposed rule.
Currently, states can assign Medicaid payments to individual providers for benefits such as health insurance, skills training and other benefits customary for employees.
However, CMS said it is "concerned that these provisions are overbroad, and insufficiently linked to the exceptions expressly permitted by the statute." CMS estimates unions could collect up to $71 million from these assignments.
The proposed rule will be published in the Federal Register July 12. Comments will be accepted for 30 days.
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