New guidance from CMS limits state use of provider-tax schemes, potentially saving taxpayers $200 billion over 10 years, with major implications for Medicaid financing.
The Centers for Medicare & Medicaid Services (CMS) has issued preliminary guidance under the One Big Beautiful Bill Act (OBBBA) that curbs statesโ use of healthcare-related provider taxes. These taxes previously allowed states to generate additional Medicaid funding, but CMS argues they created opportunities for abuse and cost-shifting onto federal taxpayers.
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Marie DeFreitas is the CFO editor for HealthLeaders.