The Centers for Medicare & Medicaid Services has said it is going to crack down on “impermissible financing arrangements” currently taking place under Medicaid.
The new thrust could wind up hurting supplemental payments helping keep long-term care providers afloat.
CMS said its new Medicaid Fiscal Accountability Rule aims to add transparency to payment processes and eliminate suspect practices.
“We have seen a proliferation of payment arrangements that mask or circumvent the rules where shady recycling schemes drive up taxpayer costs and pervert the system,” CMS administrator Seema Verma said in announcing the new proposal in mid-November.
States would have new requirements for reporting provider-level information on Medicaid supplemental payments. It also would clarify Medicaid financing definitions by proposing new regulatory definitions for Medicaid base and supplemental payments.
Both the American Health Care Association and Leading-Age stressed the importance of supplemental payments to long-term care providers.
“Provider taxes and supplemental payment arrangements both have become very important financing sources for long-term care providers,” Mark Parkinson, AHCA president and CEO, said in a statement.
From the December 2019 Issue of McKnight's Long-Term Care News
