Association Urges CMS to Align SDP, Provider Tax Rulemaking with Congressional Intent

In separate letters to the Centers for Medicare and Medicaid Services (CMS), America's Essential Hospitals shared concerns regarding preliminary guidance about state directed payment (SDP) and provider tax provisions of the Working Families Tax Cut legislation. The association reminded CMS of the important role the SDPs play in helping to offset low Medicaid payment rates and ensure access to essential services.

The association urged CMS to not cut more than Congress required and to use upcoming rulemaking as an opportunity to reduce administrative burden. In addition, the association encouraged CMS to reduce administrative burden by allowing states to continue to use separate payment terms to track SDP spending separately from other payments to managed care organizations.

Additional members-only information on the SDP and provider tax preliminary guidance is available on our website.

Contact Director of Policy Rob Nelb, MPH, at [email protected] or 202.585.0127 with questions.