Pa. provider tax to fund Medicaid

The CMS is likely to approve a long-term-care provider tax that could bring Pennsylvania's Medicaid program an additional $1 billion through federal matching funds over four years, said Gov. Edward Rendell and Sen. Arlen Specter (R-Pa.). They said the CMS would approve the plan once the state Department of Public Welfare submits the final paperwork, possibly this week. The money will be used for Medicaid payments to the facilities and to reimburse the Medicaid portion of the tax, the department said. Pennsylvania's plan calls for continuing-care retirement communities and nursing homes with fewer than 50 beds to pay $1.50 per day for each resident not enrolled in Medicare; facilities with 50 or more beds will have to pay $15.91 per day for each resident not enrolled in Medicare. Other states have used similar initiatives to tap federal funds, and the Pennsylvania Legislature approved the plan last year. -- by Joseph Mantone