On December 27, 2017, the Centers for Medicare & Medicaid Services (CMS) released a State Medicaid Director Letter (SMDL) to provide policy guidance to states on compliance with the statutory limit on available federal financial participation (FFP) for State Medicaid expenditures for Durable Medical Equipment (DME) authorized by section 1903(i)(27) of the Social Security Act (the Act) as established by section 503 of the Consolidated Appropriations Act, 2016 and further amended by section 5002 of the 21st Century Cures Act of 2016. Per the statute, the changes are effective on January 1, 2018.
We are issuing this technical correction of the letter to remove the expectation for states to notify CMS by December 31, 2017 of their choice of compliance methods. States are instead encouraged to work with CMS to determine the best mechanism for compliance in a timely manner.
The updated letter is available on Medicaid.gov at https://www.medicaid.gov/