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Federal Policy·June 8, 2026
HHS Affordability Czar Targets Provider Taxes and State-Directed Payments as Cost Drivers
Casey Mulligan, the Trump administration's healthcare affordability czar, identified provider taxes and state-directed payments as key drivers of healthcare cost inflation during a recent conference. He argued these mechanisms inflate spending beyond Medicaid and increase costs for employers and taxpayers. The remarks signal potential federal scrutiny of state financing arrangements commonly used in Medicaid managed care. No specific policy changes or timelines were announced.
Why it matters for managed care
This signals the administration may pursue restrictions on provider taxes and directed payments, which many states use to supplement Medicaid capitation rates and fund supplemental payments to MCOs.
Managed Care · Finance
Also covered by:statnews.com
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