Long-term care providers are calling on the Centers for Medicare & Medicaid Services to withdraw a potentially very costly proposal. 

Both the American Health Care Association and LeadingAge voiced concerns about the proposed Medicaid Fiscal Accountability Regulation (MFAR), warning it targets vital supplemental payment programs and state provider taxes. 

In a joint statement, AHCA and the American Hospital Association said MFAR could cut up to $50 billion nationwide from the Medicaid program annually. 

“Entire communities could lose access to care under this proposal, especially in rural areas where 15 percent of hospital revenue and nearly two-thirds of nursing facility revenue nationwide depend on Medicaid funding,”  AHCA President and CEO Mark Parkinson and AHA President and CEO Rick Pollack wrote. 

Katie Smith Sloan, LeadingAge president and CEO, said if implemented as written the rule “could have a devastating impact on providers and thereby harm the very older adults the Medicaid program is designed to protect.”