CMS proposes changes to how Medicaid taxes are capped
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Table of Contents
The Centers for Medicare & Medicaid Services (CMS) is proposing a change to how it calculates “indirect hold harmless” thresholds for healthcare-related taxes. Currently, states are limited in how much tax revenue they can collect from certain healthcare entities without violating federal rules meant to prevent those entities from simply passing the tax cost back to the government via higher service rates.
Why it matters: This is a technical change to how federal limits on state taxes are calculated. It matters primarily to state Medicaid agencies and healthcare providers who deal with these specific tax structures.
Who it affects
- State Medicaid agencies
This is a proposed rule from the Centers for Medicare & Medicaid Services; readers should consult the Federal Register before relying on these changes as they are not yet final.
Agency: Health and Human Services Department, Centers for Medicare & Medicaid Services
Source: Federal Register — read the official document