CENTERS FOR MEDICARE & MEDICAID SERVICES ISSUES RULE: MEDICAID PROGRAM; PRESERVING MEDICAID FUNDING FOR VULNERABLE POPULATIONS-CLOSING A HEALTH CARE-RELATED TAX LOOPHOLE

WASHINGTON, Feb. 2 -- Centers for Medicare & Medicaid Services has issued a rule called: Medicaid Program; Preserving Medicaid Funding for Vulnerable Populations-Closing a Health Care-Related Tax Loophole.

The rule was published in the Federal Register on Feb. 2 by Robert F. Kennedy, Secretary, Department of Health and Human Services.

Summary: This final rule addresses a loophole in a regulatory statistical test applied to State proposals for Medicaid tax waivers. The test is designed to ensure, as required by statute, that non-uniform or non-broad-based health care-related taxes, authorized under a waiver, are generally redistributive. The inadvertent loophole currently allows some health care-related taxes, especially taxes on managed c...