CMS Denies Matching Funds For Managed Care Payments For Emergency Medicaid Coverage For Immigrants Ineligible For Full Benefits

The Centers for Medicare & Medicaid Services (CMS) issued guidance to explain its updated interpretation of when states can claim federal financial participation (FFP), or matching funds, for emergency Medicaid-covered services provided to undocumented immigrants. Under a letter to state Medicaid directors (SMD # 25-003), Medicaid Managed Care Payments and Emergency Medical Condition Coverage for Aliens Ineligible for Full Medicaid Benefits, issued September 30, 2025, CMS updated its interpretation of section 1903(v) of the Social Security Act (the Act), which authorizes FFP for care and services necessary for treatment of an emergency medical condition for aliens ineligible for . . .