A coalition of 24 state attorneys general, including Nevada Attorney General Aaron D. Ford, filed comments opposing a proposed federal rule that they argue could jeopardize Medicaid funding and interfere with state control of health insurance regulation.
The rule was proposed by the Centers for Medicare & Medicaid Services (CMS), a federal agency within the U.S. Department of Health and Human Services. The coalition argued in its comment letter that the CMS proposal exceeds what Congress authorized. Specifically, the rule could change how the federal government treats certain taxes, fees, and other payments collected by states.
The coalition raised four key concerns: the rule would improperly interfere with state regulation of health insurers by penalizing states for collecting taxes and payments from health insurance companies through reduced Medicaid funding; it would improperly apply new limits from a 2025 law to taxes and payments on health insurers beyond what that law allows; it would eliminate a 30-year-old safety valve for determining when such taxes and payments reduce federal Medicaid contributions; and it would require states to reconstruct financial records and build new reporting systems.
"Medicaid and our state's health insurance system are critical to ensuring Nevadans can access the health care they need," Ford said. "This proposed rule could put Medicaid funding and health coverage at risk while interfering with Nevada's ability to regulate its own insurance market."
The coalition also includes attorneys general from Arizona, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin. The group is urging CMS to withdraw or significantly revise the proposed rule.