Medicaid

Federal Health Policy Update for July 10

The following is the latest health policy news from the federal government for July 4-10.  Some of the language used below is taken directly from government documents. Centers for Medicare & Medicaid Services CMS has posted an FAQ on inpatient hospital reviews with an emphasis on short hospital stays and its MAC Targeted Probe and Educate (TPE) program.  Find that FAQ here. Department of Health and Human Services HHS has rescinded a 1998 interpretation of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) that extended certain federal public health care benefits to illegal residents.  Among the health [...]

States Mull Response to Reconciliation Bill’s Medicaid Cuts

Establishing new grant programs for hospitals, especially for rural hospitals. Reducing or eliminating optional Medicaid benefits such as dental and vision. Cutting payments to providers. Calling their legislature back into session. These are among the moves states are considering in the wake of passage of the FY 2026 budget reconciliation bill that results in hospitals facing a loss of approximately 18 percent of their Medicaid funding over the next decade. Learn more about some the Medicaid financial challenges states now face and how they are considering responding to them in the Stateline article “States scramble to shield hospitals from GOP [...]

2025-07-08T11:54:16-04:00July 9, 2025|Medicaid|

Federal Health Policy Update for July 3

The following is the latest health policy news from the federal government for June 27 – July 3.  Some of the language used below is taken directly from government documents. Congress/Budget Reconciliation After more than 36 hours of intense lobbying by the administration and House Republican leadership and an all-night legislative session that carried well into Thursday afternoon, the House approved the Senate-passed version of H.R. 1, the reconciliation bill, by a vote of 218-214.  Voting was almost entirely along party lines, with all House Democrats voting against it and just two Republicans – Brian Fitzpatrick (PA) and Thomas Massie [...]

Health Care Implications of Senate Reconciliation Bill

On Tuesday the Senate passed an FY 2026 budget reconciliation bill by a vote of 51-50, with Vice President Vance casting the tie-breaking vote. The bill cuts $1 trillion in Medicaid spending and keeps most of the Medicaid provisions included in the version released by the Senate Finance Committee in mid-June.  The bill passed by the Senate creates a fund for rural providers of $50 billion over five years. The major Medicaid provisions in the bill include: A freeze on the size of Medicaid provider taxes, phased down reductions of current taxes toward a new, lower limit for many states, [...]

State Spending on Medicaid Rising – Fast

The states are experiencing almost unprecedented increases in their Medicaid spending – both more money and a larger share of their overall state budgets. According to a new Pew Research Center report, In fiscal year 2023, the combination of expiring federal COVID-19 pandemic aid, slowing tax revenue growth, and rising costs for Medicaid led to an increase in the share of state revenue dedicated to Medicaid of 17.8%, or $44.4 billion, over the previous year – the largest single-year rise in at least two decades. States spent 15.1% of every state-generated dollar on Medicaid, up 2.2 percentage points from the [...]

2025-06-26T15:53:22-04:00June 30, 2025|Medicaid|

The Potential Impact of the Senate’s Proposed Medicaid Cuts

After the House passed its FY 2025 budget reconciliation bill the Senate took up its own bill, with the Senate Finance Committee proposing more than $800 billion in Medicaid cuts through a combination of reduced future Medicaid provider taxes, new limits on state directed payments made through Medicaid managed care plans, new Medicaid work requirements, more frequent redetermination of Medicaid eligibility, a shorter period of retroactive eligibility for Medicaid and the Children’s Health Insurance Program, and more. The Senate continues to debate these proposals, with some members believing they are necessary and appropriate and others arguing that they would have [...]

2025-06-25T12:53:57-04:00June 26, 2025|Congress, Medicaid|

Federal Health Policy Update for June 19

The following is the latest health policy news from the federal government for June 13-19.  Some of the language used below is taken directly from government documents. Congress The Senate Finance Committee The Senate Finance Committee has released its portion of the FY 2025 budget reconciliation bill.  Major proposals include: A freeze on the size of Medicaid provider taxes, phased down reductions of current taxes toward a new, lower limit for many states, and new terms under which provider taxes can be approved. New limits on the use of Medicaid state directed payments so they eventually will not exceed 100 [...]

Federal Health Policy Update for June 12

The following is the latest health policy news from the federal government for June 6-12.  Some of the language used below is taken directly from government documents. Congress Republican senators continue to work on their version of a reconciliation bill with a goal of passage by July 4, although that deadline may slip.  Some Senate committees have begun releasing their portions of the bill but the Finance Committee’s bill, with its tax and Medicaid provisions, has not yet been released.  Among the majority party in the Senate, fault lines around the House-passed reconciliation bill remain around Medicaid provider taxes, state [...]

Administration Targets State Directed Medicaid Payments

The White House has issued a presidential memorandum on “Eliminating Waste, Fraud, and Abuse in Medicaid” that cites Medicaid “state-directed payments” as a form of waste, fraud, and abuse. According to the memorandum, states use state directed payments to pay more than Medicare rates for some Medicaid-covered services – something the memorandum suggests is contrary to current practice because “…billable costs for such care were historically capped at the same level that healthcare providers could receive from Medicare.”  This assertion comes despite a 2024 regulation that set the payment limit for state directed payments at the average commercial rate and [...]

2025-06-11T10:22:01-04:00June 11, 2025|Medicaid, Medicaid managed care, Medicaid regulations|

Federal Health Policy Update for June 5

The following is the latest health policy news from the federal government for May 30 to June 5.  Some of the language used below is taken directly from government documents. Congress Congress returned to Washington D.C., where Republican senators continue to work on their version of a reconciliation bill with a goal of passage by the full Congress by July 4.  Some Senate committees have begun releasing their portions of the bill but the committees with jurisdiction over Medicaid – the Finance and Health, Education, Labor, and Pensions (HELP) committees – have not committed to a timeline for their bills.  [...]

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