Governors oppose rule that will end IGTs
IGTs, which are legal, allow states to pay more than the minimum cost of care to government-owned healthcare facilities, such as nursing homes. In turn, the state receives more matching federal funding. Last year, Congress placed a moratorium on the implementation of the rule, which is set to take effect in coming weeks. The rule will also cut federal Medicaid funding by an estimated $3.8 billion to public and other safety net providers over five years. Governors expressed opposition during their annual winter meeting, which began Saturday.
Also recently, CMS finalized a rule that will set the provider bed-tax limit at 5.5%. The bed tax, which affects all healthcare providers, is another mechanism by which states receive more federal Medicaid funding.