Lawmakers seek to halt fund-transfer crackdowns

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A new government report has found that the administration's efforts to eliminate intergovernmental transfers were consistent with Medicaid's payment principles. But the report also found that CMS did not implement its initiative with transparency.

The Government Accountability Report, which was released this week, found that 29 states ended certain inappropriate financing arrangements. These included supplemental payments made to government-owned nursing homes. But CMS failed to issue written guidance about the program and did not provide states with explanations of its determinations.

As a result of the report, Sen. Max Baucus (D-MT) believes CMS should delay a rule that would further crack down on governmental transfers to government-run facilities. Congress injected a moratorium on the rule in a new Iraq spending bill.