Threat to Medicaid
In response to
President Barack Obama’s charge that Congressional Republicans are not willing
to address a potential July 1 hike in federal student loan interest rates, Republican
leaders proposed to finance continuation of the lower rates in part by reducing
the cap on Medicaid provider taxes from 6% to 5.5%. According to AHCA, skilled
nursing facilities in seventeen states – including Ohio – would be affected
negatively by this proposal because they have SNF provider taxes that exceed
5.5%. AHCA projects Ohio would sustain the largest loss in the country: $1.116
billion in combined state and federal funds over a 10-year federal budget
horizon. In addition, Ohio’s tax on ICFs/IDD is at the maximum level. The loss
of dollars through reduction of that tax is not factored into AHCA’s figures.
AHCA is mounting a strong campaign against the suggested provider tax cut,
which could foreshadow more radical proposals later in 2012.