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.
Indicator(s):
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