CMS Withdraws 2007 Medicaid Financing Rule
On November 30, 2010, CMS formally withdrew its controversial May 29, 2007 final rule entitled “Medicaid Program; Cost Limit for Providers Operated by Units of Government and Provisions To Ensure the Integrity of Federal-State Financial Partnership,” which sought to limit federal Medicaid payments to government health care providers and restrict certain state Medicaid financing arrangements. CMS is withdrawing the 2007 rule and restoring previous regulatory language in light of a U.S. District Court ruling that vacated the rule, along with language in the American Recovery and Reinvestment Act that expressed the sense of Congress that the cost rule should not be finalized. The withdrawal regulation is effective November 30, 2010.
