The Centers for Medicare & Medicaid Services (CMS) is launching an initiative to explore how states set the rates they pay managed care organizations to serve Medicaid patients.

The initiative consists of two parts:  first, CMS is examining the adequacy of the process states employ to set their rates – a process that affects the adequacy of the rates themselves; and second, it is drafting updated Medicaid managed care regulations.

Because private safety-net hospitals serve so many Medicaid patients, this effort could have a future impact on the payments they receive for serving these patients.

Learn more about this new undertaking in this Kaiser Health News report.