Feds Announce Process for Phasing Out Medicaid Pass-Through Payments
A number of states supplement the Medicaid revenue of high-volume Medicaid hospitals – and draw down additional federal Medicaid matching funds – by making special pass-through payments through Medicaid managed care organizations. Such payments are often used to distribute the proceeds from state hospital taxes.
The Centers for Medicare & Medicaid Services has looked upon such payments with growing disapproval in recent years and has now advised state Medicaid programs on how it plans to phase out the practice entirely.
In a bulletin to state Medicaid directors titled “The Use of New or Increased Pass-Through Payments in Medicaid Managed Care Delivery Systems,” CMS has announced its intention to ban the pass-through payments over a period of years, with limited exceptions that meet specific new criteria.
In announcing the policy, CMS acknowledges the challenges inherent in ending the use of such payments and indicates its intention to address this issue, and the phase-out process, in future regulations
Such pass-through payments are an important of Pennsylvania’s Medicaid program and the state’s private safety-net hospitals benefit considerably from them.
Go here to see the CMS bulletin on a subject of interest to many high-volume Medicaid hospitals.
In a new report based on FY 2013 and FY 2014 data, the GAO found that
Included in this edition are stories about the unexpected rebidding of HealthChoices contracts for Medicaid-covered physical health services; passage of the state’s fiscal year 2017 budget; access for Medicaid beneficiaries to drugs to treat hepatitis C; the creation by the state legislature of a task force to explore barriers to access to treatment for substance abuse; and more.
The 20 centers of excellence, which will be licensed by the state’s Department of Drug and Alcohol Programs, are expected to be open by October 1.
The state’s FY 2017 budget restores, to FY 2016 levels, Medicaid OB/NICU, burn center, trauma center, and critical access hospital payments. All had been targeted for reduction or elimination in the governor’s budget proposal.
Among other matters, the 764-page proposed regulation addresses: