Effective July 1, 2011, states must submit state plan amendments to the U.S. Centers for Medicare & Medicaid Services (CMS) indicating how each state will prohibit Medicaid payments to providers for provider-preventable conditions as required under the Patient Protection and Affordable Care Act. CMS revealed that it will delay compliance action related to the new provisions until July 1, 2012.

On June 6, 2011, the U.S. Centers for Medicare & Medicaid Services (CMS) published its final rule (Final Rule) implementing Section 2702 of the Patient Protection and Affordable Care Act. Section 2702 requires the Secretary of U.S. Department of Health and Human Services to establish rules prohibiting payments to states for provider-preventable conditions (PPCs). The Final Rule defines PPCs as both health-care acquired conditions (HCACs) and other provider-preventable conditions (OPPCs).