February 06, 2020 | FAH Policy Blog Team
A recent move by the Trump administration will dramatically force billions of dollars in state budget cuts and jeopardize the Medicaid program.
Under the proposed Medicaid Fiscal Accountability Regulation (MFAR) rule, CMS would have the ability to strike down common financing arrangements in states across the country. These arrangements include provider taxes, intergovernmental transfers and donations. If the administration’s rule is finalized, MFAR would have far-reaching, detrimental impacts on Medicaid, a program whose very mission is to provide necessary care to low-income Americans and children.
FAH opposes the Trump administration’s proposed MFAR rule and is asking it to be withdrawn given the harm it will inflict on the neediest Americans and patients across the country. The magnitude of cuts to Medicaid imposed by this proposal would also have a detrimental impact on hospitals' ability to provide care.
MFAR could have impacts that reach beyond health care. To make up for the loss of federal funding for Medicaid, many states would have to cut budget priorities like highway funding or other infrastructure.
In a comment letter sent to CMS, FAH describes the consequences the rule will have on state Medicaid programs and patients. Furthermore, the letter argues that CMS has exceeded its statutory authority. The complete letter can be viewed here.