CMS Releases Proposed Rule for Medicaid Managed Care State Directed Payment and Fee-For-Service Targeted Medicaid Practitioner Payments
(June 2, 2026) - On May 20, 2026, the Centers for Medicare & Medicaid Services released its Medicaid Managed Care State-Directed Payments and Medicaid Fee-For-Service Targeted Medicaid Practitioner Payments
Proposed Rule (CMS-2449-P). The proposed rule clarifies that the annual 10 percent reduction of state-directed payments to 110 percent of Medicare for non-expansion states applies to the grandfathered amount. This would mean a $118 million annual reduction in the Kansas program, which is currently estimated to reach 110 percent of Medicare in seven years. There are future changes related to the elimination of uniform rate increases for state-directed payments that will not apply until 2028, which the Kansas Hospital Association is currently reviewing for potential impacts. KHA will be providing formal comments on the rule and its impact on Kansas hospitals before the July 21, 2026 deadline.