Citing Stakeholder Concerns, CMS Withdraws the MFAR

The Centers for Medicare & Medicaid Services (CMS) withdrew the proposed Medicaid Fiscal Accountability Regulation (MFAR) rule Monday afternoon. First proposed in November 2019, the rule aimed to create new requirements for state governments to report provider-level information on Medicaid supplemental payments. CMS Administrator Seema Verma tweeted that healthcare stakeholders raised concerns about "potential unintended consequences" of the proposed rule, which require further study. The public comment period for the proposed rule ended on February 1. "We’ve listened closely to concerns that have been raised by our state and provider partners about potential unintended consequences of the proposed rule, which require further study," Verma said in a statement. "Therefore, CMS is withdrawing the rule from the regulatory agenda." The withdrawal came just over a month after a coalition of hospital and business groups sent a letter to Verma urging her to withdraw the MFAR, citing the "unprecedented challenges and uncertain future" created by the coronavirus disease 2019 (COVID-19) pandemic this spring.