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Greater Transparency of Supplemental Payments Needed

April 19, 2019

This Senate Finance Committee Majority Staff Report is a review of Medicaid supplemental payments to states.

The use of supplemental payments is a legal but murky payment process in which the federal government reimburse states for some of their Medicaid costs. Medicaid costs federal taxpayers $600 billion a year, of which $50 billion is supplemental payments. The report led to a proposed rule by the Centers for Medicare and Medicaid Services for better monitoring and enforcement of state Medicaid spending regarding supplemental payments announced November 12, 2019.