Several lawmakers unveiled language late Sunday that would restrict the ability of state officials to tax health-care providers such as nursing homes and return the revenue to them as higher payments for Medicaid services. This maneuver allows states to collect more in federal matching funds.
But the practice has come under fire as a shady accounting move.
Nursing home officials and senior advocates counter that the system is essential to the way the United States finances long-term care for many older Americans — and the ability of people like Allen to access it.
The provider tax has become an entrenched way for states to finance their Medicaid programs.
The language released by House Republicans on Sunday would freeze current state provider tax rates and prevent the establishment of new ones.
“Because provider taxes are an important mechanism for state Medicaid programs, the inability to assess or modify provider taxes will limit their ability to pay for Medicaid coverage,” said Eric Carlson of Justice in Aging,director of long-term services and supportsfor the organization focused on senior poverty.
