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January 18, 2007
 Medicaid Program Cost Limit for Providers Operated by Units of
Government & Provisions to Ensure the Integrity of Federal-State
Financial Partnership
The provisions of this regulation apply to all providers of Medicaid
and State Child Health Insurance Program (SCHIP) services, except
that Medicaid managed care organizations and SCHIP providers are not
subject to the cost limit provision of the regulation. The proposed
rules address the following Medicaid financing issues:
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Only units of government can participate in the financing of the
non-Federal share of Medicaid payments
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Establishment of minimum requirements for documenting cost when
using a certified public expenditure
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Providers operated by units of government are limited to
reimbursement that does not exceed the cost of providing covered
services
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Providers receive and retain the total computable amount of their
Medicaid payments. The rule will make similar changes to SCHIP regulations
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