CMS wants to crack down on supplemental Medicaid payments

Michael Brady  November 12, 2019 11:10 AM

The CMS on Tuesday proposed a new rule that would increase transparency for Medicaid state supplemental payments and financing arrangements to help hold states more accountable for Medicaid spending.

The Medicaid Fiscal Accountability Rule would help the CMS cut down back on unauthorized Medicaid spending to ensure the sustainability of the Medicaid program, CMS Administrator Seema Verma said Tuesday at a National Association of Medicaid Directors conference.

"We have seen a proliferation of payment arrangements that mask or circumvent the rules where shady recycling schemes drive up taxpayer costs and pervert the system," she said in a statement. "Today's rule proposal will shine a light on these practices, allowing CMS to better protect taxpayer dollars and ensure that Medicaid spending is directed toward high-value services that benefit patient needs."

Medicaid supplemental payments rose from 9.4% of all Medicaid payments in 2010 to 17.5% in 2017. The Senate Finance Committee, U.S. Government Accountability Office and HHS Office of Inspector General have recommended that the CMS increase its oversight of these payments to better control Medicaid spending and to ensure that states are complying with federal law.

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