CMS

Section 1902(a)(2) of the Social Security Act (the Act) requires states to share the responsibility of financing the Medicaid program with the federal government, by providing at least 40 percent of the non-federal share of expenditures under the state plan. There are several ways states can finance the non-Federal share, including health care-related taxes under section 1903(w) of the Act. States have historically looked for ways to shift this responsibility more toward the federal...

CMS Shuts Down Massive Medicaid Tax Loophole, Saving Billions for Federal Taxpayers and Restoring the Federal-State Partnership New Policy Delivers Major Program Integrity Win by Halting State Schemes that Previously Shifted Medicaid Costs onto Federal Taxpayers The Centers for Medicare & Medicaid Services (CMS) is taking decisive action – through the Preserving Medicaid Funding for Vulnerable Populations—Closing a Health Care-Related Tax Loophole Final Rule – to implement and enforce...