CMS Proposes Medicaid Provider Tax Regulation
The Centers for Medicare & Medicaid Services has published a proposed rule that would implement a portion of H.R. 1, last year’s federal budget reconciliation bill, that called for establishing new indirect hold-harmless thresholds for health care-related taxes – primarily, provider taxes, which are currently employed in 49 states and the District of Columbia. Major changes include: Replacing the six percent safe harbor with state-specific thresholds based on July 4, 2025 structures. Prohibiting states from introducing new Medicaid provider taxes or increasing existing provider taxes that were in effect on that same date. Phasing down the provider tax ceiling [...]
