CMS has officially withdrawn its proposed Medicaid fiscal accountability rule.
CMS proposed the rule in November 2018. It aimed to promote transparency and fiscal integrity by establishing new reporting requirements for state supplemental payments to Medicaid providers.
But last August, some hospital associations called on CMS to withdraw the rule, arguing that it could exacerbate the challenges U.S. hospitals.
The hospital associations, including America's Essential Hospitals and the American Health Care Association, argued that finalizing the rule would introduce "unprecedented restrictions on states' ability to fund their share of the Medicaid program" at a time when hospitals are facing challenges and an uncertain future due to the COVID-19 pandemic.
CMS Administrator Seema Verma tweeted last September that the agency would move to scrap the rule after listening to concerns from hospitals and other stakeholders.
The action taken by CMS officially withdraws the rule. The document officially withdrawing it is scheduled to be published in the Federal Register Jan. 19.
"Today I took action to withdraw the proposed Medicaid fiscal accountability rule from the federal register," Ms. Verma tweeted. "While we support its intent, further work is needed to ensure accountability for states while protecting critical safety-net care for vulnerable patients."