CMS Proposes Additional Medicaid Provider Tax Rule
Based on the passage of the One Big Beautiful Bill Act (OBBBA), the Centers for Medicare and Medicaid Services (CMS) proposed another rule to implement certain Medicaid provider tax changes.
The taxes, which help fund state matches for Medicaid spending, are used in almost all states. Under the OBBBA, beginning Oct. 1, all states are prohibited from imposing new provider taxes or increasing ones in effect on or after July 4, 2025. State “hold harmless” allowances are replaced by provider- and state-specific thresholds based on taxes that were effective July 4, 2025.
The proposed rule would implement the legislation reducing the indirect hold harmless threshold by 0.5 percentage points every year from 2028 to 2032, when the thresholds reach 3.5% — the allowable levy.
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#medicaid #providertaxes
https://www.modernhealthcare.com/politics-regulation/mh-cms-medicaid-provider-tax-restrictions/
HHS Defers $1 Billion In Funding To CA, MN
The Department of Health and Human Services (HHS) deferred more than $1 billion in Medicaid payments to California and Minnesota as a result of what it says is possible fraud in federal programs. CA had $867.5 million withheld and MN $199 million. The feds say reviews found a significant number of payment claims that needed additional documentation.
Additional article: https://thehill.com/policy/healthcare/5981015-trump-pauses-california-minnesota-medicaid/
#medicaid #fwa
— Marc S. Ryan
