Medicaid program; payment for long-term care facility services and inpatient hospital services--HCFA.

On September 30, 1981, we published interim final regulations concerning Medicaid payment for long-term care (LTC) facility services and inpatient hospital services. The major purpose of the regulations was to implement amendments to the Medicaid law that are designed to increase States' flexibility in setting payment rates for those services, while keeping Federal reporting and other administrative requirements to the minimum necessary to assure proper accountability. Although the regulations were effective upon publication, we provided a 90-day period for public comment. Based on the comments received during the public comment period, and on the operating experience we have gained since the regulations were published, we have concluded that further changes in those regulations are needed. This document sets forth the changes, and explains our reasons for making them.