CMS seeks to block supplemental Medicaid payments to providers

Modern Healthcare: The CMS wants to end billions in supplemental funding that helped safety net and Medicaid providers care for the poorest people.

Pass-through payments are paid to Medicaid managed care plans as "add-ons” to the base capitation rate. The plans are required to pass through these payments to contracted providers who often treat a disproportionate share of Medicaid or uninsured patients with complex or costly cases. The CMS says the additional payments are not actuarially sound since they are not directly related to contracted services.

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