Medicaid Financing and the Vital Role of Local Provider Taxes, Part I: Local Provider Participation Funds

• May 23, 2024

• Carlos Zaffirini, Jr. , Zaffirini Law PLLC

This article is the first of 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 in Texas and Florida (read the second article here). Federal Medicaid law generally allows states and localities to use health care-related taxes as a source of funding for the non-federal share. Texas’ and Florida’s local provider assessments – known as Local Provider Participation Funds (LPPFs) – provide a flexible and compliant source of Medicaid funding, fundamentally enhancing equity and compassion in health care systems. As discussed herein, the sustained endorsement of LPPFs is crucial for fostering a health care infrastructure that is inclusive and equitable, particularly in light of evolving economic and demographic landscapes.

ARTICLE TAGS

• Hospitals and Health Systems Practice Group
• Government Reimbursement