HHS Rescinds Medicaid Outpatient and Other Rules - July 1, 2009

Yesterday afternoon, the Department of Health and Human Services announced it would rescind the Medicaid outpatient hospital services rule along with other Medicaid regulations. Congratulations – this is a significant victory for safety net hospitals! In a press release issued yesterday afternoon, the Department said it would rescind the outpatient hospital rule, a rule limiting Medicaid reimbursement for school based services and portions of a rule restricting access to case management services. The Department is also delaying implementation of a rule limiting the use of provider taxes until June 30, 2010, pending a review to determine if further clarification is needed.