On May 6, 2009, CMS published a proposed rule that would rescind three controversial Bush Administration Medicaid rules that have been blocked by Congress. Specifically, the rule would withdraw: a December 28, 2007 final rule regarding Medicaid payment for the costs of certain school-based administrative and transportation activities; a November 7, 2008 final rule clarifying the definition of Medicaid outpatient hospital services; and certain provisions of a December 4, 2007 interim final rule with comment period on optional state case management services. In proposing to rescind the rules, CMS cited concerns about “the potential restrictions on services available to beneficiaries, potential deleterious effect on state partners in the economic downturn, and the lack of clear evidence demonstrating that the approaches taken in the regulations are warranted.” CMS is accepting comments on the rulemaking through June 1, 2009, including comments on, among other things, problems that could result from rescission of the rules and whether the objectives of the rules might also be accomplished through alternative approaches, such as program guidance and technical support.
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