Congressional Republicans are targeting a loophole that all states except Alaska have used for decades to pull in billions of dollars in extra Medicaid funds through a provider tax that allows them to collect higher matching fund payments from the federal government.
It’s estimated that ending the loophole could save the federal government about $600 billion over the next 10 years, which would be a large part of the $880 billion in Medicaid cuts that a House committee that oversees the federal healthcare program has been tasked to find, reported The New York Times on Tuesday.
A recent analysis showed that some Republican-led states could be hit the hardest, as their budgets for Medicaid are often highly reliant on the medical provider tax strategy for bringing in money.
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