Noteworthy News

Medicaid Provider Taxes

dollarsA growing number of states are using provider taxes to help fund their Medicaid programs.  Such taxes have become an important means for states to raise their share of Medicaid funding during difficult economic times.

At the same time, provider taxes are coming under increasing fire in Washington.  During several recent deficit reduction efforts in the past year, policy-makers have debated reducing the ability of states to use provider taxes or barring the use of such taxes entirely.

The loss of provider taxes as a means of raising money would no doubt lead many states to consider reducing their commitment to Medicaid, such as by lowering payments to providers or reducing Medicaid benefits.  Because urban safety-net hospitals serve so many more Medicaid patients than the typical acute-care hospital, they are far more dependent on state Medicaid programs to help pay for the care they provide to many of their patients – and have a correspondingly greater stake in future debates about the use of Medicaid provider taxes.

The Congressional Research Service has prepared a report on Medicaid provider taxes – what they are, how they arose, how and where they are used, and why they are now under fire.  Download that report here.

Leave a Reply

  • *

Search for
Noteworthy News

Related posts

    [exec] boposts_show(); [/exec]