As urged by the AHA, the Centers for Medicare & Medicaid Services yesterday announced that it will withdraw its Medicaid fiscal accountability proposed rule from its regulatory agenda.

鈥淲e鈥檝e listened closely to concerns that have been raised by our state and provider partners about potential unintended consequences of the proposed rule, which require further study,鈥 CMS Administrator Seema Verma . 鈥淭herefore, CMS is withdrawing the rule from the regulatory agenda.鈥

CMS still must formally withdraw the rule through a notice published in the Federal Register.

The AHA earlier this year urged CMS to withdraw a proposed rule related to Medicaid program financing and supplemental payments because it would "severely curtail the availability of health care services to millions of individuals" and "many of its provisions are not legally permissible.

鈥淲e appreciate CMS for acknowledging the harmful consequences this rule would have for patients,鈥 said AHA Executive Vice President Tom Nickels. 鈥淯p to $50 billion in annual funding for the Medicaid program was on the line, cuts that would have crippled state financing and limited access to care, especially in rural and underserved areas. Hospitals and health systems will be greatly relieved when the proposed rule is formally withdrawn.鈥

Related News Articles

Chairperson's File
Public
The recently enacted One Big Beautiful Bill Act will bring big changes to health care. AHA President and CEO Rick Pollack joined me for a Leadership Dialogue鈥
Headline
The Congressional Budget Office today released its estimate of the budgetary effects of the One Big Beautiful Bill Act, as enacted. CBO projects the law will鈥
Headline
The Centers for Medicare & Medicaid Services July 17 issued two letters to states regarding policies on continuous eligibility and workforce initiatives.鈥
Headline
Sen. Josh Hawley, R-Mo., July 15 introduced legislation that would repeal some of the Medicaid funding reductions included in the recently enacted One Big鈥
Headline
The House July 3 voted 218-214 to pass the final version of the One Big Beautiful Bill Act (H.R. 1), which enacts many of President Trump鈥檚 legislative鈥
Headline
The Senate narrowly passed the One Big Beautiful Bill Act (H.R. 1) on July 1 by a 50-50 tally, with Vice President J.D. Vance casting the tie-breaking vote.鈥