The Centers for Medicare & Medicaid Services is launching a focused review of how the states of Missouri and Texas process Medicaid applications.
Delays in processing could result in funding cuts, Modern Healthcare reported. CMS declined to tell the media outlet whether it sent similar letters to other states.
According to a letter sent to Texas’ state Medicaid director on May 22, CMS is planning to conduct a “focused review” of the state’s procedures for processing applications, “particularly given the prolonged period of the state’s noncompliance.”
A similar letter was sent to Missouri, according to the Columbia Missourian.
The letters follow an interim final rule that CMS published in December meant to ensure that states are following reporting guidelines and maintaining compliance with disenrollment procedures.
CMS’ enforcement authorities under the rule include the ability to require states to submit a corrective action plan for any noncompliance, suspend a state’s procedural Medicaid disenrollments, impose civil money penalties or even reduce a state’s federal medical assistance percentage, also known as FMAP.