Proposed Medicaid Fiscal Accountability Regulation (MFAR) Withdrawn

Regulation | September 14, 2020

The proposed Medicaid Fiscal Accountability Regulation (MFAR) was announced as withdrawn on September 14. If finalized, state nursing home financing policies such as provider tax exemptions and supplemental payment programs would have been jeopardized. 

CMS Administrator Seema Verma announced on September 14 that the agency will not move forward with the proposed Medicaid Fiscal Accountability Regulation (MFAR).

Announced in November 2019, the proposed MFAR if finalized could have jeopardized state Medicaid financing structures, including those for nursing homes. Specifically, provider tax programs and exemptions for life plan communities/CCRCs and other facilities would have likely been disallowed by the federal government. And, the proposal could have reduced or eliminated supplemental payment programs that are critical to nursing home financing in many states. These policies would have had dangerous implications for these communities and the older adults who live there. 

LeadingAge strongly opposed the proposal, and in addition to urging CMS to withdraw the rule provided extensive analysis of the proposed rule and advocacy resources to members and for the general public. Close to 4,000 comments were submitted to the Federal Register in response to the proposed MFAR. More than half mentioned life plan communities/CCRCs and/or nursing homes, and many of the submitted public comments came from residents of these communities themselves.