Medicaid Financing and the Vital Role of Local Provider Taxes, Part II: Recent Developments in Medicaid Financing and Local Provider Taxes

• May 24, 2024

• Carlos Zaffirini, Jr. , Zaffirini Law PLLC

This article is the second in a two-part series examining the financing of Medicaid’s non-federal share, specifically the crucial role of local provider taxes in supporting access to care for Medicaid beneficiaries in underserved communities (read the first article here). While the first article highlighted the importance of Local Provider Participation Funds (LPPFs) in Texas and Florida, this article will address the Centers for Medicare & Medicaid Services’ (CMS’) ongoing scrutiny of Medicaid financing, particularly states’ use of health care-related taxes and private redistribution arrangements. CMS has yet to identify any change in law that would authorize a new interpretation of existing statute and regulation and such an interpretation could harm Medicaid beneficiaries, particularly those in urban and rural underserved communities that rely on local funding sources.

ARTICLE TAGS

• Hospitals and Health Systems Practice Group
• Government Reimbursement