New rule could impact Medicaid provider payment cuts

The regulation is likely to trigger "stiff resistance" from governors and some members of Congress who fear it will undermine the ability of states to control Medicaid spending.

The New York Times: Rule Would Discourage States' Cutting Medicaid Payments To Providers
In a new effort to increase access to health care for poor people, the Obama administration is proposing a rule that would make it much more difficult for states to cut Medicaid payments to doctors and hospitals (Pear, 5/2).

CQ HealthBeat: GOP to Target Proposed Regulation Slowing Medicaid Cuts, Insiders Say
A proposed federal regulation that would require state Medicaid programs to follow certain time-consuming procedures before being able to cut payment rates to doctors, hospitals, and other providers will encounter stiff resistance from governors and in Congress, GOP insiders say. Iowa's Republican Senator Charles E. Grassley has expressed concern that the proposed rule "could have a tremendous impact" on the ability of states to control Medicaid spending (Reichard, 5/2).