Families USA Submits Comments On Preserving Medicaid Funding for Vulnerable Populations — Closing a Health Care-Related Tax Loophole Proposed Rule

CMS proposes a major policy change to its existing waiver process concerning health care-related taxes — important funding mechanisms that help states finance their share of Medicaid costs. Families USA urges CMS to allow for a fair and appropriate transition period for states to adapt to this dramatic change, since a short one-year or nonexistent transition time would endanger the continued and sustainable Medicaid financing that is crucial for the nearly 80 million Americans served by state Medicaid programs.

Since the new law represents a significant shift in approach, states need a realistic transition period to effectuate the substantial structural changes to Medicaid funding that may be required in their jurisdictions.

We strongly urge CMS to set a fair, appropriate, multi-year transition period under the proposed regulation, giving states the maximum leeway to adjust to a new regulator framework.