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May 20, 2026, the Centers for Medicare & Medicaid Services (CMS) published a proposed rule that would cap Medicaid managed care state directed payments (SDPs) and certain fee-for-service (FFS) supplemental practitioner payments at 100% of the published Medicare rate, or 110% in states that have not expanded Medicaid under the Affordable Care Act (ACA). CMS projects that the rule, together with provisions of the One Big Beautiful Bill Act (OBBBA), would reduce Medicaid spending by $774.8 billion over ten years, of which $510.1 billion would be the federal government’s share.
This Health Capital Topics article examines the proposed rule’s scope, key payment limit provisions, and initial industry response. (Read more…)
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