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Strategist | strategy-catalyst

CMS proposes broader caps on state-directed payments, cutting up to $775B from health system revenues

Hero image about CMS proposing broader caps on state-directed payments, featuring The Health Management Academy and CMS logos with three key points: caps extended to all Medicaid services, fewer grandfathered payments, and a carveout for pediatric and critical access hospitals.

On May 20, CMS proposed a rule that would cap Medicaid state-directed payments (SDPs) at Medicare rates and extend those limits well beyond what Congress laid out in last year's H.R. 1 legislation (also known as OBBBA).

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