Health Care Related Taxes in Medicaid

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August 2012 | Financing

Financing the Medicaid program is a shared responsibility of the federal and state governments. Each state makes its own decisions, within federal requirements, regarding how to finance its share of the Medicaid program. States generate their share through state general revenue, contributions from local governments including providers operated by local governments, and other revenue sources such as health care-related taxes. This issue brief explains the use of health care- related taxes in Medicaid which are defined by federal statute as taxes of which at least 85 percent of the tax burden falls on health care providers (§1903(w)(3)(A) of the Social Security Act).

Publication Type: Issue Briefs

Tags: nursing facilities, payment, state budgets, supplemental payments, Intermediate care facility for persons with intellectual disabilities (ICF/ID), Intermediate care facility (ICF), financing, health care related taxes, hospitals