States invoke emergency rules to cut Medicaid rates

Sipkoff, Martin
February 2005
Drug Topics;2/7/2005, Vol. 149 Issue 3, p82
Trade Publication
In efforts to reduce Medicaid rates across the United States, local governments and states invoke a budgetary emergency then declare rules and regulations influencing reductions in Medicaid reimbursements and dispensing of fees. Under state and federal laws, adjustments in Medicaid reimbursements generally require state administrators a time-consuming process of public hearings and sometimes legislative approval. However, many states allow administrators to fast-track emergency rules. Injunctive or temporary legal efforts to block emergency reimbursement rule changes are often supported by local courts. But state supreme courts and federal appeals court have repeatedly ruled that states have the right to lower reimbursements as they see fit.


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