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Some tension within HHS, it seems. Seems like those who wanted to avoid the appearance of cutting Medicaid funding during a pandemic won out.
Trump Administration Shelves Plan to Sharpen Scrutiny of State Medicaid Arrangements
Trump Administration Shelves Plan to Sharpen Scrutiny of State Medicaid Arrangements
WASHINGTON—The Trump administration said it was withdrawing a plan to tighten federal oversight of how states pay for their share of Medicaid after some states and medical groups said the new rule would have deprived them of billions of dollars in funding in the throes of the pandemic.
The decision is being celebrated by hospitals, governors and other health organizations that had fiercely lobbied for the idea to be shelved. The move to scrap the proposal for now followed weeks of debate within Health and Human Services, according to people familiar with the decision. White House advisers had been pushing for tightening oversight, according to people familiar with the decision, but some top HHS leaders, including HHS Deputy Secretary Eric Hargan, had been opposed. . .
A senior administration official said Ms. Verma advocated for the change but was overruled. CMS spokesman Johnathan Monroe called that “a blatantly false statement,” adding that Ms. Verma “is the one who suggested more time be dedicated to addressing the concerns of stakeholders and avoiding any unattended consequences of the proposed rule.”
Some HHS officials had expressed concern that the proposal could become a 2020 campaign issue because it could leave states with financial shortfalls that would imperil Medicaid coverage during the pandemic.