The Centers for Medicare and Medicaid Services may have just signaled the beginning of the end for one of California’s most aggressive Medicaid financing schemes.
In late May, CMS proposed a rule that would limit many Medicaid payment arrangements to Medicare-equivalent reimbursement levels while targeting the financing mechanisms that shift excessive costs onto federal taxpayers.
The more states spend, the more federal money they receive.
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The proposal specifically highlights intergovernmental transfers and similar arrangements that have allowed states to inflate federal reimbursement claims.
This rule comes as California health officials are asking CMS to approve a set of pending state plan amendments that would further expand reimbursement arrangements built around intergovernmental transfers — the very type of financing mechanism now facing increased scrutiny from federal regulators.
For years, states have
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