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.