An obscure set of state taxes on hospitals and other health providers is in the crosshairs of congressional budget cutters because the levies can lead to higher federal spending on Medicaid. Known as provider taxes because states impose them on hospitals, nursing homes and other facilities that provide healthcare, the taxes boost a state’s budget for funding Medicaid. That in turn attracts more matching federal dollars to fund the program—money that is ultimately directed back to the hospitals and clinics. If Congress were to restrict the taxes’ use to finance state Medicaid contributions entirely, it could save more than $600 billion over a decade, according to estimates by the Congressional Budget Office.
Read the full article: The $600B Medicaid Maneuver on the Chopping Block //
Source: https://www.wsj.com/health/healthcare/hospital-state-taxes-medicaid-budget-cuts-59af2c62