CMS Issues Proposed Rule to Restrict Medicaid State-Directed Payments

CMS has released a proposed rule on Medicaid supplemental payments. Modern Healthcare reports the rule would restrict state-directed payments, a key funding mechanism for hospitals, particularly those serving large Medicaid populations. This follows heightened scrutiny from the agency on how states finance their share of Medicaid. The proposal, if finalized, could pressure hospital margins in states reliant on these payments. The rule is now open for public comment.