House E&C Committee Markup Targets Medicaid Provider TaxesImage Banner

House E&C Committee Markup Targets Medicaid Provider Taxes

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House E&C Committee Markup Targets Medicaid Provider Taxes

March 21, 2016

On March 14 and 15, the House Energy & Commerce Committee held a markup on the Common Sense Savings Act of 2016 (H.R. 4725). The bill seeks to make several changes to the Medicaid program. It would restrict eligibility for benefits for lottery winners and prisoners and repeal the Prevention and Public Health Fund. It would also sunset the enhance FMAP match for CHIP that was established in the Affordable Care Act (ACA).

Of particular interest to ANCOR members are the provisions regarding Medicaid provider taxes, which states use to increase federal funding. ANCOR supports expanding the class of providers that could be taxed to include HCBS providers. The bill would reduce the provider tax threshold to 5.5 percent from the current 6 percent. The committee considered, and defeated, and amendment that would have struck that proposed change to the legislation.

Additional hearing materials, including video of the proceedings, are available here.

The Center on Budget and Policy Priorities posted an article on March 16 discussing provider taxes and arguing that changes contained in the bill under consideration would shift costs to states. That article is available here.