news and updates
CMS Publishes Community Engagement Requirements Interim Final Rule; States and Providers File Lawsuits
On June 3, the Centers for Medicare & Medicaid Services (CMS) published an interim final rule (IFR) implementing the community engagement requirements established in the Working Families Tax Cuts legislation (WFTCL). The WFTCL imposed an 80-hour per month...
HHS Public Benefits Notice Vacated by Federal District Court
A federal district court in Rhode Island vacated notices issued by several federal agencies, including the Department of Health and Human Services (HHS), that expanded the definition of “federal public benefit” under the Personal Responsibility and Work Opportunity...
CMS Issues Proposed Rule Implementing Indirect Hold Harmless Changes
On July 23, CMS issued a proposed rule implementing the Working Families Tax Cut legislation’s (WFTCL’s) indirect hold harmless provisions. Such provisions include the freeze on provider tax increases in all states for all services other than nursing facility and...
CMS Issues Budget Neutrality Preliminary Guidance
The Centers for Medicare & Medicaid Services (CMS) published preliminary guidance in a June 11 State Medicaid Director Letter (SMDL) regarding the Working Families Tax Cuts legislation’s (WFTCL’s) budget neutrality requirements for Section 1115 demonstrations....
CMS Proposed State Directed Payment Rule: What You Need to Know
On May 22, the Centers for Medicare and Medicaid Services (CMS) published its long-awaited notice of proposed rulemaking (SDP Proposed Rule) to implement the state directed payment (SDP) provisions enacted last summer in the Working Families Tax Cut Legislation (H.R....
CMS Releases Guidance on H.R. 1’s Six-Month Redetermination Requirement
H.R. 1, now referred to as the Working Families Tax Cuts legislation (WFTCL), requires states to redetermine Medicaid eligibility more frequently for most of the Medicaid expansion population and individuals receiving coverage through a waiver of the plan. Beginning...
Federal Court Strikes Down HRSA’s Offsite Registration Policy
On March 3, 2026, the U.S. District Court for the District of Columbia struck down the Health Resources & Services Administration's (HRSA's) requirement that for new offsite outpatient facilities to be eligible to use 340B discounted drugs they must first appear...
HRSA Withdraws 340B Rebate Pilot Program then Publishes RFI, ICR
On February 10, 2026, the Health Resources & Services Administration (HRSA) rescinded its 340B Rebate Model Pilot Program. Shortly thereafter, HRSA issued (1) a Request for Information (RFI) to gather input regarding the potential future use of rebates in the 340B...
CMS Issues Updated “Dear Colleague” Letter Interpreting H.R. 1’s SDP Grandfathering Provision
On February 2, 2026, the Centers for Medicare & Medicaid Services (CMS) released updated preliminary guidance related to the grandfathering of state directed payments (SDPs) under H.R. 1, known as the One Big Beautiful Bill Act. The new “Dear Colleague” letter...
Maine District Court Grants Preliminary Injunction Halting 340B Rebate Pilot Program, Government Files Appeal
A Maine district court judge has issued a preliminary ruling prohibiting the Health Resources & Services Administration’s (HRSA) 340B Rebate Pilot Program from going into effect on January 1, 2026. Earlier this year, HRSA announced a pilot program that would allow...
CMS Issues Work Requirements Guidance
On December 8, 2025, the Centers for Medicare & Medicaid (CMS) released preliminary guidance on the community engagement requirements in the Working Families Tax Cuts legislation (WFTCL). The agency must publish an interim final rule by June 1, 2026, and the...
HRSA Approves All Nine 340B Rebate Pilot Program Manufacturer Plans
Earlier this year, the Health Resources & Services Administration (HRSA) announced a pilot program which allows 340B discounts for certain drugs to be provided as a rebate after the purchase rather than an upfront discount. At this time, the program is limited to...
CMS Issues “Dear Colleague” Letter Interpreting H.R. 1’s Provider Tax Provisions
The Centers for Medicare & Medicaid (CMS) continues to publish preliminary guidance on the Medicaid provisions in H.R. 1, now referred to as the Working Families Tax Cuts legislation (WFTCL). On November 14, the agency sent a “Dear Colleague” letter to states...
Watching for More CMS Guidance on H.R. 1 and Limits on Medicaid Provider Payments
H.R. 1 enacted numerous changes to the Medicaid program, many of which require guidance from the Centers for Medicare & Medicaid Services (CMS) to facilitate implementation of and compliance with these changes. Eyman Partners is closely monitoring CMS guidance and...
Texas District Court Sets Aside 2024 CMS Hold Harmless Rule & Related Bulletins
A Texas District Court judge granted Texas’ motion for summary judgment in the state’s lawsuit challenging two CMS Informational Bulletins and provisions in CMS’ 2024 Medicaid managed care rule that prohibit certain voluntary redistribution agreements among private...
CMS Publishes Information on Rural Health Transformation Program & Application Instructions
H.R. 1, passed in July 2025, established the Rural Health Transformation (RHT) Program—a $50 billion grant program that will provide $10 billion in grants to states annually from 2026 to 2030 to support and improve rural health care access, delivery, and outcomes. The...
CMS Releases Informational Bulletin on SDP Quality Evaluations
The Centers for Medicare & Medicaid Services (CMS) published a Center for Medicaid and CHIP Services (CMCS) Informational Bulletin on September 10, 2025 regarding state directed payment (SDP) quality evaluations. The bulletin notes that, despite regulatory...
CMS Issues “Dear Colleague” Letter Interpreting H.R. 1’s SDP Grandfathering Provision
On September 9, the Centers for Medicare & Medicaid Services (CMS) sent states a “Dear Colleague” letter providing preliminary guidance related to the grandfathering of state directed payments (SDPs) under H.R. 1, known as the One Big Beautiful Bill Act. The...