Rep. Sam Graves (R-Mo.) and Rep. Ron Kind (D-Wis.) introduced a bill that would ensure that certain state Medicare provider taxes paid by critical-access hospitals be included in cost calculations for Medicare reimbursement.
Bill would allow inclusion of provider taxes
Critical-access hospitals are paid by Medicare as a percentage of their cost, and an August 2010 CMS rule stipulated that state provider taxes that fund Medicaid may not be eligible for inclusion as a cost for Medicare purposes, though such taxes had been included in CAH costs for years. The move was strongly opposed by hospital groups and resulted in at least one lawsuit opposing the change.
The American Hospital Association sent letters to Graves and Kind in support of the bill, noting in one that “these provider taxes are clearly allowable, and the fact that there may be payments made by the state to the provider—or the fact that Medicaid payments from the state may be funded by the provider taxes—does not change this result.”
A similar bill was introduced last year, while the new bill, H.R. 1398, was referred to the Ways and Means Committee.
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