Syrtis Solutions distributes a monthly Medicaid news summary to help you stay up-to-date. The monthly roundup focuses on developments, research, and legislation that relate to Medicaid program integrity, cost avoidance, coordination of benefits, improper payments, fraud, waste, and abuse. Below is a summary of last month’s Medicaid news.
U.S. Department of Health and Human Services, December 29
The Centers for Medicare & Medicaid Services (CMS) today announced that all 50 states will receive awards under the Rural Health Transformation Program, a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation (Public Law 119-21) to strengthen and modernize health care in rural communities across the country. In 2026, states will receive first-year awards from CMS averaging $200 million within a range of $147 million to $281 million. read more
The Centers for Medicare & Medicaid Services (CMS) today announced that all 50 states will receive awards under the Rural Health Transformation Program, a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation (Public Law 119-21) to strengthen and modernize health care in rural communities across the country. In 2026, states will receive first-year awards from CMS averaging $200 million within a range of $147 million to $281 million. read more
Fierce Healthcare, December 23
In July, the Trump administration passed the One Big Beautiful Bill Act, otherwise known as the budget reconciliation bill. The law, H.R. 1, has made waves for its historic nearly $1 trillion cut to federal Medicaid spending over 10 years. Healthcare stakeholders have been vocal opponents of the move. H.R. 1 brings the first-ever national work requirements to the Medicaid program, which will kick in at the start of 2027. read more
In July, the Trump administration passed the One Big Beautiful Bill Act, otherwise known as the budget reconciliation bill. The law, H.R. 1, has made waves for its historic nearly $1 trillion cut to federal Medicaid spending over 10 years. Healthcare stakeholders have been vocal opponents of the move. H.R. 1 brings the first-ever national work requirements to the Medicaid program, which will kick in at the start of 2027. read more
ABC News, December 23
Medicaid programs made more than $200 million in improper payments to health care providers between 2021 and 2022 for people who had already died, according to a new report from the independent watchdog for the Department of Health and Human Services. But the department’s Office of Inspector General said it expects a new provision in Republicans’ One Big Beautiful Bill requiring states to audit their Medicaid beneficiary lists may help reduce these improper payments in the future. read more
Medicaid programs made more than $200 million in improper payments to health care providers between 2021 and 2022 for people who had already died, according to a new report from the independent watchdog for the Department of Health and Human Services. But the department’s Office of Inspector General said it expects a new provision in Republicans’ One Big Beautiful Bill requiring states to audit their Medicaid beneficiary lists may help reduce these improper payments in the future. read more
The Lewiston Tribune, December 20
A panel this week on Idaho’s Medicaid transition was largely characterized by discussion of the future administrative burden faced by health care providers and the varying uncertainties among Medicaid recipients about the growing role out-of-state parties will have in the administration of in-state services. The Idaho Legislature’s Medicaid Review Panel’s meeting at Madison Health Hospital in Rexburg on Monday was one of several… read more
A panel this week on Idaho’s Medicaid transition was largely characterized by discussion of the future administrative burden faced by health care providers and the varying uncertainties among Medicaid recipients about the growing role out-of-state parties will have in the administration of in-state services. The Idaho Legislature’s Medicaid Review Panel’s meeting at Madison Health Hospital in Rexburg on Monday was one of several… read more
Louisiana Department of Health, December 12
The Louisiana Department of Health (LDH) announced it will not renew its contract with the managed care organization (MCO) UnitedHealthcare beyond the current contract expiration date of December 31, 2025. This decision comes as LDH reaches the end of the three-year contract cycle for its six Medicaid MCOs. The Joint Legislative Committee on the Budget granted LDH authority to extend contracts for an additional year through 2026. read more
The Louisiana Department of Health (LDH) announced it will not renew its contract with the managed care organization (MCO) UnitedHealthcare beyond the current contract expiration date of December 31, 2025. This decision comes as LDH reaches the end of the three-year contract cycle for its six Medicaid MCOs. The Joint Legislative Committee on the Budget granted LDH authority to extend contracts for an additional year through 2026. read more
KFF, December 4
Section 1115 Medicaid demonstration waivers offer states an avenue to test new approaches in Medicaid that differ from what is required by federal statute, if [in the HHS Secretary’s view] the approach is likely to “promote the objectives of the Medicaid program.” They can provide states additional flexibility in how they operate their programs, beyond the considerable flexibility that is available under current law. read more
Section 1115 Medicaid demonstration waivers offer states an avenue to test new approaches in Medicaid that differ from what is required by federal statute, if [in the HHS Secretary’s view] the approach is likely to “promote the objectives of the Medicaid program.” They can provide states additional flexibility in how they operate their programs, beyond the considerable flexibility that is available under current law. read more
5 Key Facts About Medicaid and Provider Taxes
KFF, December 1
The 2025 reconciliation law imposes significant new restrictions on states’ ability to generate Medicaid provider tax revenue, including prohibiting all states from establishing new provider taxes or from increasing existing taxes as well as reducing existing provider taxes for states that have adopted the Affordable Care Act (ACA) Medicaid expansion. Medicaid is jointly financed by the federal government and the states, with the federal government guaranteeing states federal matching payments with no pre-set limit. read more
KFF, December 1
The 2025 reconciliation law imposes significant new restrictions on states’ ability to generate Medicaid provider tax revenue, including prohibiting all states from establishing new provider taxes or from increasing existing taxes as well as reducing existing provider taxes for states that have adopted the Affordable Care Act (ACA) Medicaid expansion. Medicaid is jointly financed by the federal government and the states, with the federal government guaranteeing states federal matching payments with no pre-set limit. read more
