42 CFR §430.45

1. (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.
2. (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.
3. (c)Other applicable rules. Other rules regarding reduction of Medicaid payments are set forth in parts 433 and 447 of this chapter.