New 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.