CMS Withdraws Controversial MFAR Rule

September 17, 2020

In good news for state Medicaid agencies and health care providers across the country, the Centers for Medicaid and Medicare Services (CMS) has decided to withdraw its controversial proposed Medicaid Fiscal Accountability Regulation (MFAR).   

WHA, along with American Hospital Association, governors, counties, nursing homes and Medicaid directors across the country, in January urged CMS to withdraw its proposed Medicaid Fiscal Accountability Regulation, stating that it could disrupt Medicaid financing and lead to budgetary concerns for the Medicaid program, as well as impose new burdensome reporting requirements. WHA also recently requested Congress to intervene to pause new regulations like MFAR that will make it harder for health care providers to respond to the COVID-19 pandemic.

“We are pleased that CMS has withdrawn this rule and hope that instead CMS will work with states to strengthen funding and reduce administrative burden in the Medicaid program,” said Eric Borgerding, WHA president and CEO.

CMS Administrator Seema Verma indicated that the concerns raised by states and providers were the key factor in her decision to withdraw the rule for further study of its unintended consequences.  

This story originally appeared in the September 17, 2020 edition of WHA Newsletter