Federal Policy · VA
Virginia Hospitals Project $31B Medicaid Loss Under Proposed CMS Rule
A proposed CMS rule implementing last summer's reconciliation bill includes Medicaid payment cuts to healthcare facilities that Virginia hospitals say go beyond what Congress authorized. Hospital systems contend the rule would reduce state Medicaid funding by $31 billion. The public comment period closed this week. The rule affects facility reimbursement under Medicaid and represents CMS's interpretation of reconciliation bill directives that hospital chains argue exceeds legislative intent.
Why it mattersThe proposed rule threatens substantial Medicaid facility payment reductions that could destabilize provider networks and force MCOs to renegotiate contracts or absorb network adequacy risks if facilities reduce Medicaid participation.