Review Process for Disallowance of State Federal Funds Participation
Another review CMS has undertaken will result in a new rule to implement a new reconsideration process for states when CMS disallows federal funds participation and will lengthen the time states have to credit the federal government for uncollected overpayments, revise repayment installment standards, and clarify certain interest charges for states. This regulation should provide more flexibility and clarification in the redetermination and disallowance process, implement statutory requirements that provide states additional time to credit the federal government for overpayments, and make technical corrections. Additionally, the regulation will provide savings to states as they can spread their repayment to the federal government over a longer period of time. The proposed rule for these new repayment options published on August 3, 2011.