AHIP has developed a summary of a proposed rule, the “Medicaid Fiscal Accountability Rule” (MFAR), which was released by the Centers for Medicare & Medicaid Services (CMS) on November 12th. The MFAR addresses several methods that states use to finance Medicaid base and supplemental payments, including health care-related taxes and provider-related donations. The MFAR would also establish new reporting requirements for states to provide CMS with information on supplemental payments to Medicaid providers. The MFAR reflects concerns about these financing and payment arrangements raised in reports by the Government Accountability Office (GAO), Office of the Inspector General (OIG), and Medicaid and CHIP Payment and Access Commission (MACPAC), as well as ongoing Congressional interest.
AHIP’s summary describes key provisions of interest and implications for health plans.