Temporary Medicaid Funding Freeze Spooks Managed Care Plans; Dems Demand Answers
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Feb 07, 2025
Amid the chaos of a federal freeze on grant and loan payments issued by Donald Trump’s administration at the end of January, some managed Medicaid plans had to turn to pandemic-era funding mechanisms to ensure their contracted providers could continue operating, a trade organization tells AIS Health, a division of MMIT. And one prominent managed care plan decried the funding freeze as “reckless,” while Energy and Commerce Committee Democrats demanded answers from several federal agencies on the shutdown.
On Jan. 27, the Office of Management and Budget announced a freeze on all federal grant and loan payments, which prompted immediate legal challenges. Although the White House noted that Medicaid and the Supplemental Nutrition Assistance Program would “continue without pause,” Medicaid payment portals were inaccessible for a time in all 50 states. The portals have since come back online and the freeze was blocked by two federal judges prior to its Jan. 28 effective date. But at least one state’s portal then went down again, causing more frustration.
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