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H.R. 8115 modifies how the federal government can penalize states for violations of Medicaid managed care requirements. Currently, federal law requires complete payment bans for certain managed care violations, but this bill gives the U.S. Department of Health and Human Services the flexibility to defer or reduce payments instead, when appropriate to the scope of the violation. If a partial payment reduction fails to bring a state into compliance, the department can then apply the full payment ban. The bill also establishes that states electing to use managed care must comply with specific federal requirements under Medicaid law. This affects state Medicaid programs, managed care organizations operating within them, and the federal government's enforcement tools, though no specific funding amounts or implementation timelines are specified in the legislation.

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