What’s the Impact of Eliminating Medicaid Provider Taxes?

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Citation of Original Publication

“What’s the Impact of Eliminating Medicaid Provider Taxes?” The Hilltop Institute, May 6, 2025. https://www.hilltopinstitute.org/wp-content/uploads/publications/EliminatingProviderTaxes_6May2025.pdf.

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Abstract

This document, written by Hilltop Director of Analytics and Research Morgan Henderson, Senior Data Scientist Leigh Goetschius, and Interim Executive Director Alice Middleton, quantifies the impact of removing the 6% provider tax safe harbor threshold on state-level federal Medicaid funding. Using data on hospital and nursing facility tax rates and net patient revenue, this analysis finds that eliminating the 6% provider tax threshold for hospitals and nursing facilities would put $83.7 billion of federal Medicaid funding at risk.