CMS Withdraws Proposed MFAR Rule

The Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma announced on Monday, September 14, 2020 that CMS is officially withdrawing the controversial proposed Medicaid Fiscal Accountability Regulation (MFAR).  If finalized, MFAR would have drastically altered the way states are able to finance their share of Medicaid.  MFAR was opposed by a variety of stakeholders, including hospitals, physicians, national healthcare associations, governors, and state health departments.  Verma cited that these stakeholders raised concerns about “unintended consequences” of MFAR.

Written by: Catherine Moore