HHS Secretary Kathleen Sebelius announced plans to rescind a series of Medicaid regulations that the hospital industry has been fighting against for the past few years.
Specifically, the Obama administration will be rescinding all or part of three Medicaid regulations that were previously issued. The rulemakings in total would have eliminated reimbursement for school-based administrative and transportation costs; limited the outpatient hospital and clinic service benefit for Medicaid; and restricted beneficiary access to case management services.
The CMS also plans to delay until June 30, 2010, parts of a regulation that clarified limitations on healthcare-related tax programs, to determine whether states need additional clarification or guidance. “These regulations, if left in place would have potentially adverse consequences for Medicaid beneficiaries, some of our nation’s most vulnerable people,” Sebelius said in a written statement.
A moratorium for most of the regulations had been set to expire on July 1, under a provision set by the
American Recovery and Reinvestment Act of 2009.
The hospital industry has pushed to extend a moratorium on these rulemakings, claiming their provisions would have cut their funding.
The announcements were cheered by the American Hospital Association. “We are very pleased that CMS has permanently withdrawn the Medicaid outpatient rule," said Richard Umbdenstock, president and CEO of the association, in a written statement. "The decision is important for those in need of outpatient service like dental care for children, screenings and physician services in the emergency department .We are also pleased that CMS has delayed, for one year, changes in the provider tax rule especially during this time when states are facing great economic pressure and struggling to fund their Medicaid program. “
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at
mheditorial@modernhealthcare.com. Please be sure to include your hometown and state, along with your organization and title.
