March 11, 2024
Payers | Tea Leaves
  • The Centers for Medicare & Medicaid Services (CMS) approved New York’s amended Medicaid section 1115 demonstration on Tuesday, spurring the agency to invest in behavioral health and health equity initiatives. The amendment, which expires March 31, 2027, allows the state to establish base rates for safety net hospitals and establishes the Medicaid Hospital Global Budget Initiative, so hospitals can focus on value, not volume of care. CMS is dedicating $2.2 billion toward the initiative, primarily for financially vulnerable hospitals. According to a release, it also addresses workforce challenges by including a loan repayment program for clinicians working in community-based practices in underserved areas. The agency is also authorizing $694 million toward recruitment and retention of Medicaid health care practitioners. (Article here)