42 CFR § 430.45 - Reduction of Federal Medicaid payments.

---
identifier: "/us/cfr/t42/s430.45"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 430.45 - Reduction of Federal Medicaid payments."
title_number: 42
title_name: "Public Health"
section_number: "430.45"
section_name: "Reduction of Federal Medicaid payments."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "C"
subchapter_name: "MEDICAL ASSISTANCE PROGRAMS"
part_number: "430"
part_name: "GRANTS TO STATES FOR MEDICAL ASSISTANCE PROGRAMS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302."
regulatory_source: "53 FR 36571, Sept. 21, 1988, unless otherwise noted."
cfr_part: "430"
---


# 430.45 Reduction of Federal Medicaid payments.

(a) *Methods of reduction.* CMS may reduce Medicaid payments to a State as required under the Act by reducing—

(1) The Federal Medical Assistance Percentage;

(2) The amount of State expenditures subject to FFP;

(3) The rates of FFP; or

(4) The amount otherwise payable to the State.

(b) *Right to reconsideration.* A state that receives written final notice of a reduction under paragraph (a) of this section has a right to reconsideration. The provisions of § 430.42 (b) and (c) apply.

(c) *Other applicable rules.* Other rules regarding reduction of Medicaid payments are set forth in parts 433 and 447 of this chapter.