42 C.F.R. § 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. (1) The Federal Medical Assistance Percentage;
2. (2) The amount of State expenditures subject to FFP;
3. (3) The rates of FFP; or
4. (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.