States levy taxes on hospitals to cover Medicaid expansion costs

States are beginning to turn to hospitals to cover the cost of Medicaid expansion once the federal match begins to drop next year.The Affordable Care Act provides 100% federal financing for those made newly eligible for Medicaid under the law. The federal match rate falls to 95% in 2017, 94% in 2018, 93% in 2019, and then 90% in 2020 and beyond. State Medicaid spending is projected to jump to 4.4% in 2017 compared to 2.9% in 2016, according to a report by the Kaiser Family Foundation. Total Medicaid spending was $509 billion last year, up from $495 billion in 2014.

Source: States levy taxes on hospitals to cover Medicaid expansion costs – Modern Healthcare Modern Healthcare business news, research, data and events

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