This presentation provides a brief overview of the history of Medicaid payment of Medicare cost sharing and reviews a MACPAC study on the effect of cost-sharing policies on the use of Medicare outpatient services. The results of the study indicate that for dually eligible beneficiaries, higher Medicaid payment of Medicare cost sharing is associated with an increased likelihood of having a Medicare outpatient office visit and a decreased likelihood of using safety net provider services, such as FQHCs, RHCs, and hospital outpatient departments.