Medicaid supplemental payment rule heads to White House

A rule that would strengthen oversight of supplemental payments for Medicaid providers arrived at the White House for review this week.

The proposed rule, received by the White House Office of Management and Budget on Tuesday, would “promote transparency” of supplemental Medicaid payments through new reporting requirements for states, according to the Department of Health and Human Services.

Supplemental payments are given by states to providers to offset uncompensated costs incurred when caring for Medicaid beneficiaries.

“Specifically, this rule would require all supplemental payments be distributed proportional to the volume or cost of services delivered or be tied to meeting performance benchmarks, place a time limit on all supplemental payments, and require States to report additional details regarding supplemental payments,” HHS said of the proposal when it was first published in 2015.

By law, the OMB's review must be completed within 90 days of receiving the proposal.

The amount of supplemental Medicaid payments distributed by states was on the rise in recent years, with $9 billion more spent on the payments in 2010 than in the previous four years.