CMS Administrator Seema Verma said state and provider partners raised concerns about "potential unintended consequences" of the proposed rule, which require further study.
The Centers for Medicare & Medicaid Services (CMS) withdrew the proposed Medicaid Fiscal Accountability Regulation (MFAR) rule Monday afternoon.
"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," CMS Administrator Seema Verma tweeted. "Therefore, CMS is withdrawing the rule from the regulatory agenda."
First proposed in November 2019, the rule aimed to create new requirements for state governments to report provider-level information on Medicaid supplemental payments.
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.
The Centers for Medicare & Medicaid Services (CMS) withdrew the proposed Medicaid Fiscal Accountability Regulation (MFAR) rule Monday afternoon, citing stakeholder concerns about "potential unintended consequences" of the proposed rule, which require further study.