Representatives Johnson and Williams Introduce Legislation to Delay Implementation of the Medicaid Fiscal Accountability Rule

WASHINGTON, D.C. – Today, Congresswoman Eddie Bernice Johnson (TX-30) and Congressman Roger Williams (TX-25) introduced the MFAR Transparency Act to delay the implementation of the Medicaid Fiscal Accountability Rule (MFAR) and direct the U.S. Government Accountability Office (GAO) to conduct a study on the financial impacts on each state. The bill would also identify necessary information for reporting to comply with laws and regulations pertaining to the funding of Medicaid payments.

Additionally, the bill would keep the Centers for Medicare and Medicaid Services (CMS) from finalizing MFAR without future congressional authorization, but still allow them to implement provisions to improve accounting, reporting and transparency of Medicaid payments. In March, members of the Texas delegation sent a letter to CMS Administrator Seema Verma urging the delayed implementation and restructuring of MFAR.

“During this public health crisis, it is of upmost importance that we safeguard and strengthen the health systems that our communities are depending upon. That is why we must ensure that states do not lose out on critical Medicaid federal funding or essential health services due to the implementation of the Medicaid Fiscal Accountability Rule,” said Congresswoman Johnson. “I am proud to lead this effort with my Texas colleague Congressman Roger Williams, and we must be committed to protecting our hospitals and community health services during this COVID-19 pandemic.”

“Blindly implementing the MFAR would lead to devastating hospital closures and disproportionately harmful outcomes in rural and underserved regions of Texas. The financial impacts would cause local governments to increase taxes in

order to make up for lost dollars, resulting in a reduction of our ability to provide essential health services for Texans,” said Congressman Williams. “By delaying the rule and thoroughly analyzing the consequences of its implementation, we will be able to ensure patients continue receiving the highest quality of care possible. I’m proud to lead this effort on behalf of our Texas health systems and the patients they serve.”

“Congresswoman Eddie Bernice Johnson has been a steadfast defender of the Medicaid program and ensuring all Texans, especially the most vulnerable, have access to care,” said Ted Shaw, Texas Hospital Association President/CEO. “The proposed rule would devastate Texas’s already fragile health care system, and we applaud her leadership to delay finalization of MFAR and further analyze its impact.”