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In the SMD letter (#16-001) published on February 11, 2016, CMS indicated that states that

Reimbursement to IHS and Tribal providers through the encounter rate is an option available to all states as a means to satisfying the requirement to reimburse such providers in accordance with the requirements at 42 CFR 447.518(a)(2).

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Date
FAQ ID
94766
FAQ Question
In the SMD letter (#16-001) published on February 11, 2016, CMS indicated that states that pay IHS and Tribal providers through encounter rates can continue to pay that rate and that it will satisfy the requirements of 42 CFR 447.518(a)(2), which specify that the state's payment must be in accordance with the definition of AAC. Can CMS please clarify that reimbursement at the encounter rate is available to all states, not just those that already reimburse using the encounter rate.