HHS Defers $1 Billion in Federal Medicaid Payments to Two States

HHS and CMS announced Tuesday they deferred over $1 billion in federal Medicaid payments to two states, including $867.5 million to California, citing high-risk claims including home-based services. The deferrals represent a federal payment hold while CMS reviews claims for potential fraud, waste, or abuse. The action takes effect immediately. This is significant because payment deferrals can strain state budgets and delay provider payments, potentially disrupting network adequacy and access to home and community-based services that many MCOs coordinate or manage under managed long-term services and supports contracts.

Finance · LTSS · Managed Care