Documents/NCFRR/3: Health Care/3.3.8: Medicaid Tax Gimmick

3.3.8: Medicaid Tax Gimmick

Eliminate state gaming of Medicaid tax gimmick.

Other Information:

(Saves $5 billion in 2015, $44 billion through 2020) Many states finance a portion of their Medicaid spending by imposing taxes on the very same health care providers who are paid by the Medicaid program, increasing payments to those providers by the same amount and then using that additional “spending” to increase their federal match. We recommend restricting and eventually eliminating this practice.

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