Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Proposed Rules 5105 

1On December 30, 2019, CMS extended the 

comment period for the November 18, 2019, 

proposed rule by 15 days, from January 17, 2020, 

to February 1, 2020, in response to feedback from 

stakeholders indicating additional time was needed 

to review the proposed rule in light of several 

holidays and the complexity of the rule. 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Medicare & Medicaid 

Services 

42 CFR Parts 430, 433, 447, 455, and 

457 

[CMS–2393–WN] 

RIN 0938–AT50 

Medicaid Program; Medicaid Fiscal 

Accountability Regulation 

ACTION: Withdrawal of proposed rule. 

SUMMARY: This document withdraws a 

proposed rule that was published in the 

Federal Register on November 18, 2019. 

The proposed rule would have 

established new reporting requirements 

and codified other Medicaid financing 

requirements, including related to 

permissible sources for non-federal 

share financing. 

DATES: The proposed rule on Medicaid 

Fiscal Accountability Regulation, 

published on November 18, 2019 at 84 

FR 63722 is withdrawn January 21, 

2021. 

ADDRESSES: In commenting, please refer 

to file code CMS–2393–WN. 

Comments, including mass comment 

submissions, must be submitted in one 

of the following three ways (please 

choose only one of the ways listed): 

1. Electronically. You may submit 

electronic comments on this regulation 

to http://www.regulations.gov. Follow 

the ‘‘Submit a comment’’ instructions. 

2. By regular mail. You may mail 

written comments to the following 

address ONLY: Centers for Medicare & 

Medicaid Services, Department of 

Health and Human Services, Attention: 

CMS-2393–WN, P.O. Box 8016, 

Baltimore, MD 21244–8016. 

Please allow sufficient time for mailed 

comments to be received before the 

close of the comment period. 

3. By express or overnight mail. You 

may send written comments to the 

following address ONLY: Centers for 

Medicare & Medicaid Services, 

Department of Health and Human 

Services, Attention: CMS–2393–WN, 

Mail Stop C4–26–05, 7500 Security 

Boulevard, Baltimore, MD 21244–1850. 

FOR FURTHER INFORMATION CONTACT: 

Andrew Badaracco, (410) 786–4589, 

Richard Kimball, (410) 786–2278, and 

Daniil Yablochnikov, (410) 786–8912, 

for Medicaid Provider Payments, 

Supplemental Payments, Upper 

Payment Limits, Provider Categories, 

Intergovernmental Transfers, and 

Certified Public Expenditures. 

Timothy Davidson, (410) 786–1167, 

Jonathan Endelman, (410) 786–4738, 

and Stuart Goldstein, (410) 786–0694, 

for Health Care-Related Taxes, ProviderRelated Donations, and Disallowances. 

Lia Adams, (410) 786–8258, Charlie 

Arnold, (404) 562–7425, Richard Cuno, 

(410) 786–1111, and Charles Hines, 

(410) 786–0252, for Medicaid 

Disproportionate Share Hospital 

Payments and Overpayments. 

Jennifer Clark, (410) 786–2013, and 

Deborah McClure, (410) 786–3128, for 

Children’s Health Insurance Program 

(CHIP). 

SUPPLEMENTARY INFORMATION: On 

November 18, 2019, we published a 

proposed rule that proposed to amend 

our regulations dealing with grants to 

states for medical assistance programs, 

state fiscal administration, payments for 

services, Medicaid program integrity, 

and allotments to states and grants. (84 

FR 63722). After an internal review of 

the proposed rule, CMS has decided to 

withdraw the proposed rule. 

The proposed rule sought to promote 

accountability and transparency for 

Medicaid payments by establishing new 

reporting requirements for states to 

provide CMS with certain information 

on supplemental payments to Medicaid 

providers, including supplemental 

payments approved under either 

Medicaid state plan or demonstration 

authority, codification of parameters for 

Medicaid upper payment limit 

calculations, provider definitions 

associated with data reporting and 

Medicaid financing, Medicaid 

disproportionate share hospital audit 

requirements and changes to some 

existing operational processes to better 

align with technology improvements. 

This proposed rule also sought to 

establish additional requirements to 

ensure that state plan amendments 

proposing new supplemental payments 

are consistent with the proper and 

efficient operation of the state plan and 

with efficiency, economy, and quality of 

care. Finally, this proposed rule sought 

to address the non-federal share 

financing of supplemental and base 

Medicaid payments, including states’ 

uses of health care-related taxes and 

provider-related donations, and other 

requirements for sources of the nonfederal share. 

We received approximately 10,188 

individual comments (4,225 

unduplicated comment submissions) 

through the extended comment period.1

We received significant comments on 

the proposed rule regarding its potential 

impact on states and their budgets, 

Medicaid providers and Medicaid 

beneficiary access to needed services. 

Many commenters stated their belief 

that the proposed rule did not include 

adequate analysis of these matters. 

Numerous commenters indicated that 

CMS, in some instances, lacked 

statutory authority for its proposals and 

was creating regulatory provisions that 

were ambiguous or unclear and subject 

to excessive Agency discretion. 

While we continue to support the 

intent and purpose of the rule to 

increase fiscal accountability and 

improve transparency in the Medicaid 

program, based on the considerable 

feedback we received through the public 

comment process, we have determined 

it appropriate to withdraw the proposed 

provisions at this time. Moving forward, 

we want to ensure agency flexibility in 

re-examining these important issues and 

exploring options and possible 

alternative approaches that best 

implement the requirements of the 

Medicaid statute. We also believe it is 

important to re-examine and fully 

analyze the proposed Medicaid 

reporting requirements in consideration 

of the recent Congressional action 

through the Consolidated 

Appropriations Act of 2021 (H.R. 116– 

133, Pub. L. 116–260) which establishes 

new statutory requirements for 

Medicaid supplemental payment 

reporting. This withdrawal action does 

not limit our prerogative to make new 

regulatory proposals in the areas 

addressed by the withdrawn proposed 

rule, including new proposals that may 

be substantially identical or similar to 

those described therein. 

Finally, the withdrawal of this 

proposed rule does not affect existing 

federal legal requirements or policy that 

were merely proposed to be codified in 

regulation, including certain provisions 

related to Medicaid financing and 

Medicaid Upper Payment Limit (UPL) 

requirements. For example, without 

limitation, this includes guidance in 

State Medicaid Director Letter (SMDL) 

#13–003, which discussed a submission 

process to comply with the UPL 

requirements; SMDL #14–004, which 

discussed Medicaid financing and 

provider-related donations; as well as 

State Health Officials (SHO) Letter #14– 

001, which addressed health carerelated taxes. This withdrawal action 

does not affect CMS’ ongoing 

application of existing statutory and 

regulatory requirements or its 


khammond on DSKJM1Z7X2PROD with PROPOSALS
5106 Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Proposed Rules 

1See 46 U.S.C. 40502. 

2See, e.g., 46 CFR 530.8(a) (2016). 

3ANPRM: Service Contracts and NVOCC Service 

Arrangements, 81 FR 10198 (Feb. 29, 2016). 

responsibility to faithfully administer 

the Medicaid program. 

Dated: January 12, 2021. 

Seema Verma, 

Administrator, Centers for Medicare & 

Medicaid Services. 

Dated: January 12, 2021. 

Alex M. Azar II, 

Secretary, Department of Health and Human 

Services. 

[FR Doc. 2021–01078 Filed 1–14–21; 4:15 pm] 

BILLING CODE 4120–01–P 

FEDERAL MARITIME COMMISSION 

46 CFR Part 530 

[Docket No. 20–22] 

RIN 3072–AC84 

Service Contracts 

AGENCY: Federal Maritime Commission. 

ACTION: Notice of Proposed Rulemaking. 

SUMMARY: The Federal Maritime 

Commission proposes to amend its 

service contract filing requirements to 

permit ocean common carriers to file 

original service contracts up to 30 days 

after the contract goes into effect. 

DATES: Submit comments on or before 

March 5, 2021. 

In compliance with the Paperwork 

Reduction Act (PRA), the Commission is 

also seeking comment on revisions to an 

information collection. See the 

Paperwork Reduction Act section under 

Rulemaking Analyses and Notices 

below. Please submit all comments 

relating to the revised information 

collection requirements to the FMC and 

to the Office of Management and Budget 

(OMB) at the address listed below under 

ADDRESSES on or before March 22, 2021. 

Comments to OMB are most useful if 

submitted within 30 days after 

publication. 

ADDRESSES: You may submit comments, 

identified by Docket No. 20–22, by the 

following methods: 

• Email: secretary@fmc.gov. For 

comments, include in the subject line: 

‘‘Docket No. 20–22, Comments on 

Service Contract Rulemaking.’’ 

Comments should be attached to the 

email as a Microsoft Word or textsearchable PDF document. 

Comments regarding the proposed 

revisions to the relevant information 

collection should be submitted to the 

FMC through one of the preceding 

methods and a copy should also be sent 

to the Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, Attention: 

Desk Officer for Federal Maritime 

Commission, 725 17th Street NW, 

Washington, DC 20503; by Fax: (202) 

395–5167; or by email: OIRA_

Submission@OMB.EOP.GOV. 

Instructions: For detailed instructions 

on submitting comments, including 

requesting confidential treatment of 

comments, and additional information 

on the rulemaking process, see the 

Public Participation heading of the 

Supplementary Information section of 

this document. Note that all comments 

received will be posted without change 

to the Commission’s website, unless the 

commenter has requested confidential 

treatment. 

Docket: For access to the docket to 

read background documents or 

comments received, go to the 

Commission’s Electronic Reading Room 

at: https://www2.fmc.gov/readingroom/ 

proceeding/20-22/. 

FOR FURTHER INFORMATION CONTACT: 

Rachel E. Dickon, Secretary; Phone: 

(202) 523–5725; Email: secretary@

fmc.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Executive Summary 

II. Background 

A. Service Contract Requirements 

B. 2016–2018 Rulemakings 

C. 2018 World Shipping Council Petition 

for Exemption 

D. 2020 Exemptions 

III. Proposed Changes 

A. Delayed Filing for Original Service 

Contracts 

1. Definition of ‘‘Effective Date’’ (§ 530.3) 

2. Service Contract Filing Requirements 

(§ 530.8) 

3. Service Contract Implementation 

Requirements (§ 530.14) 

B. Technical Amendments 

1. Definition of ‘‘Authorized Person’’ 

(§ 530.3) 

2. Exceptions and Exemptions (§ 530.13) 

IV. Public Participation 

V. Rulemaking Analyses and Notices 

I. Executive Summary 

The Shipping Act of 1984, as 

amended (46 U.S.C. 40101–41309) 

(Shipping Act or Act) permits ocean 

common carriers and shippers to enter 

into individual, confidential service 

contracts for the international 

transportation of cargo, and requires 

that these contracts be filed with the 

Federal Maritime Commission. Under 

the current regulations in 46 CFR part 

530, original service contracts must be 

filed on or before their effective date, 

while service contract amendments 

must be filed within 30 days after they 

go into effect. The disparate treatment of 

original service contracts versus 

amendments was the result of a 2016– 

2017 rulemaking in which the 

Commission determined to allow 

delayed filing for amendments while 

retaining the requirement that original 

service contracts be filed on or before 

their effective date. 

In response to the COVID–19 

pandemic and its impact on service 

contract negotiation and filing, the 

Commission recently granted a 

temporary exemption permitting 

original service contracts, like 

amendments, to be filed up to 30 days 

after their effective date. Based on the 

Commission’s experience during the 

exemption period and the perceived 

benefits of allowing delayed filing for 

original service contracts, the 

Commission has tentatively determined 

to make the status quo permanent. 

Accordingly, the Commission is 

proposing to revise its service contract 

regulations in part 530 to allow original 

service contracts, like amendments, to 

be filed up to 30 days after they go into 

effect. The Commission is also 

proposing several technical 

amendments to the service contract 

regulations. 

The Commission requests comments 

on these proposed amendments and any 

other amendments necessary to 

implement delayed filing for original 

service contracts. 

II. Background 

A. Service Contract Requirements 

The Shipping Act permits ocean 

common carriers and shippers to enter 

into individual, confidential service 

contracts for the international 

transportation of cargo, and requires 

that these contracts be filed with the 

Federal Maritime Commission.1 For 

many years, the Commission’s 

implementing regulations required that 

ocean common carriers file all service 

contracts and amendments with the 

Commission before the contract or 

amendment could go into effect.2

B. 2016–2018 Rulemakings 

In 2016, the Commission published 

an advanced notice of proposed 

rulemaking (ANPRM) to revise its 

regulations governing service contracts 

and non-vessel-operating common 

carrier (NVOCC) negotiated service 

arrangements (NSAs).3 The rulemaking 

was based on the Commission’s 

retrospective review of its regulations 

and feedback from the industry and 

shippers. One suggestion from ocean 

common carriers was to allow service 

contract amendments to go into effect 


khammond on DSKJM1Z7X2PROD with PROPOSALS