White House Supports States' Rights to Slash Medicaid Payments

In a court brief filed Monday, the White House said it supports the states' ability to reduce Medicaid payments to long-term care operators and other healthcare providers. The related court case was brought by California providers over the state's proposed payment cuts.

The White House specifically noted that it supports California's right to cut Medicaid payments to a number of providers by 10 percent. The reductions were also approved by CMS in October of 2011.

The White House's court brief also said that states have wide discretion in setting payment rates and that rates can and should be evaluated "to avoid the perpetuation of payment rates that are unnecessarily high."

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