AHA Argues HHS Brief Fails to Link Provider Taxes to Premiums
In a commentary responding to an HHS issue brief, AHA officials Ben Finder and Isaac Nicchitta argue that the agency's analysis does not prove Medicaid hospital provider taxes raise employer-sponsored insurance premiums. The HHS brief had projected that lowering provider tax limits could cut premiums by up to 2.5% by 2032. The authors contend the HHS findings are highly sensitive to the chosen start year, fail to control for other premium drivers, ignore tax size, and use a flawed comparison group that includes Texas, which has local hospital provider taxes. They conclude provider taxes remain an integral, evidence-supported Medicaid financing tool and warn that restricting them would threaten access to care for vulnerable beneficiaries rather than improve affordability.