Federal Policy
Georgetown CCF Comments on CMS Proposed Provider Tax Hold Harmless Rule
The Georgetown University Center for Children and Families submitted comments to CMS on a proposed rule that would amend the indirect hold harmless threshold for health care-related taxes. Provider taxes are a major financing mechanism states use to draw down federal Medicaid matching funds, and changes to hold harmless provisions affect how states structure these tax arrangements. The proposed rule impacts state Medicaid financing strategy and federal matching fund availability. Comments are due as part of the federal rulemaking process.
Why it mattersChanges to provider tax hold harmless thresholds directly affect state Medicaid financing flexibility and the federal matching dollars available to support program operations and expansion.