Crackdown on Medicaid Provider Taxes Spurs States to Fight Back

Federal Medicaid officials’ push for greater oversight of states’ health-care provider taxes could lead to more lawsuits against the Biden administration as states seek to forestall denials or clawbacks of billions of dollars in funding for their Medicaid agencies.

Florida and Texas have already sued the Centers for Medicare & Medicaid Services over the agency’s demands that states more closely regulate what happens with their provider taxes, which states assess to hospitals, nursing homes, and other health-care facilities to pay the states’ share of Medicaid funding.

The CMS, in a February 2023 informational bulletin, without naming Florida or Texas, ...