What’s the Impact of Eliminating Medicaid Provider Taxes?

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.