A bipartisan group of lawmakers is calling on the Centers for Medicare & Medicaid Services to withdraw or revise a proposed rule that could be costly for continuing care retirement communities and their residents.

“We do not believe it’s the intention of CMS to take regulatory action that would increase state taxes or the cost of nursing home care for private-pay residents,”  the lawmakers wrote in a letter to CMS. “The proposed MFAR, however, could do just that by disallowing provider tax exemptions or discounts for nursing homes that serve all or mostly older residents who pay out-of-pocket.”

The letter sent by the group was in response to the proposed Medicaid Fiscal Accountability Regulation, which was released by the agency in November.

Providers have warned that the rule would disallow the longstanding provider tax exemptions and discounts for some CCRCs. They’ve also cautioned that the change could lead to “major financial burdens” for CCRCs and possible closures of skilled nursing units within CCRCs. 

“This change constricts the availability of high-quality nursing home beds at a time when demand is increasing exponentially. Older Americans who have spent their lives contributing to their communities and planning their retirements will pay the price,” they added.