Arizona proposes cutting $40 million from Medicaid reimbursement
Arizona has asked the CMS to allow it to end retroactive coverage for Medicaid beneficiaries, a move expected to save the state $40 million in the first year it goes into effect.
If granted, the waiver would prevent providers from billing for services given in the three months before a beneficiary applies for Medicaid coverage, assuming the patient was eligible during that time. Providers in the state warn that they could face increased uncompensated-care costs if the waiver is approved. Arizona Medicaid officials have said they would monitor the stability of provider networks following implementation.
To date, Arkansas, Indiana, Iowa, Kentucky and New Hampshire have either won permission to waive retroactive eligibility or have a pending request with the CMS to do so.