Trump Plan to Tame State Medicaid Finance Schemes Sees Pushback

Hospitals, nursing homes, and physicians are lining up against a Trump administration plan to curb questionable state Medicaid financing arrangements, saying the changes could slash annual funding by up to $49 billion, hurt beneficiary access to care, and limit states’ ability to fund their cash-strapped programs.

Like other sweeping health-care directives from the Trump administration, the proposed Medicaid Fiscal Accountability Regulation will likely face a legal challenge from provider groups and states that could have to pay a larger share of program costs, said Cindy Mann, a partner at Manatt Health in Washington.

The proposed rule would give the ...