Governors Warn Trump Rule Could Lead to Big Medicaid Cuts

Governors of both major political parties are warning of dire consequences of a regulation proposed by President Donald Trump’s administration that could lead to big cuts in Medicaid, reducing access to health care for low-income Americans. The fiscal accountability rule proposed by the Centers for Medicare and Medicaid Services (CMS) would tighten federal oversight and approval over complex financing strategies states have long used to help pay for their share of the Medicaid program. Also targeted are certain payments to hospitals that treat many low-income patients. Public comments closed last week amid a chorus of criticism from hospitals, nursing homes, insurers, doctors and advocates for the poor. Trade associations for hospitals, nursing homes and doctors are asking the administration to withdraw the proposal and go back to the drawing board.