On August 13^th, ADvancing States submitted comments to the Centers for Medicare and Medicaid Services regarding the proposed rule, Reassignment of Medicaid Provider Claims.  The proposed rule would remove regulatory language promulgated in 2014 that added exceptions to the prohibition on reassignment of provider claims.  Specifically, the 2014 regulation allowed for payment to a third party, “for benefits such as health insurance, skills training and other benefits customary for employees.”  Based on this provision, states have the option to establish payment arrangements with third party entities to assist with group purchasing of insurance, to help with skills training, and other professional tasks.  In the comments, ADvancing States recommended maintaining the option, but no requirement, that allows states to address these issues in a flexible manner based on the unique needs and demographics of their HCBS system.  If CMS does finalize this change, ADvancing States recommends including language that specifically allows for the option to deduct finance costs associated with self-directed care, including fiscal intermediary services, payroll taxes, and other necessary expenses. 

To view the comment letter, click here.