Facing billion-dollar budget gaps, states have asked the federal government to waive the so-called “maintenance of effort” requirements. However, the Department of Health and Human Services has pushed back against the request, instead suggesting numerous ways for states to cut costs but not enrollment.
That battle comes to a head this weekend, with the nation’s governors in town for their winter conference.
HHS, trying to soothe state fears, put out a new report Friday morning stressing that the reform law provides states with flexibility and resources to operate Medicaid programs. The department also put out a new 12-page guidance document on the maintenance of effort provision Friday morning.