CMS Closes Medicaid Health Care-Related Tax Loophole

CMS released information on a new rule that will close a Medicaid provider tax loophole utilized by some states. The loophole allows state health care-related taxes, especially taxes on managed care organizations, to be imposed at higher tax rates on Medicaid taxable units than non-Medicaid taxable units, contrary to statutory and regulatory intent. Missouri’s Medicaid provider taxes are considered uniform and broad based, and this final rule will have no impact on current operations. MHA released an issue brief with additional information.