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Hospitals push back at CMS proposal to cap state Medicaid payments

A photo of a hallway in the hospital with two patients waiting.
Photo: Mario Tama/Getty Images

Hospitals concerned rule would reduce state-directed payments far more than Congress intended, placing additional strain on safety net hospitals that serve large numbers of low income patients.

A proposal that would place firm caps on state Medicaid payments has been introduced by The Centers for Medicare & Medicaid Services, a move the agency says could save more than $775 billion over the next decade.

The plan, released May 20, represents one of the most sweeping federal efforts in

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