Data / Federal rules / 2025-08566
Medicaid Program; Preserving Medicaid Funding for Vulnerable Populations-Closing a Health Care-Related Tax Loophole Proposed Rule
The Centers for Medicare & Medicaid Services published this proposed rule in the Federal Register on May 15, 2025. Comments closed on July 14, 2025.
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What the agency says
This proposed rule is intended to address 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 care organizations, to be imposed at higher tax rates on Medicaid taxable units than non-Medicaid taxable units, contrary to statutory and regulatory intent for health care-related taxes to be generally redistributive. The proposed provisions would better implement the statutory requirements by adding additional safeguards to ensure that tax waivers that exploit the loophole because they pass the current statistical test, but are not generally redistributive, are not approvable.
Key facts
- Document number
- 2025-08566
- Type
- Proposed rule
- Action
- Proposed rule
- Agency
- Health and Human Services Department; Centers for Medicare & Medicaid Services
- Published
- May 15, 2025
- Comments due
- July 14, 2025
- Dates
- To be assured consideration, comments must be received at one of the addresses provided below, by July 14, 2025.
- Docket
- CMS-2448-P
- Regulation ID (RIN)
- 0938-AV58
- Code of Federal Regulations
- 42 CFR 433
- Topics
- Administrative practice and procedure; Child support; Claims; Grant programs-health; Medicaid
- Significant
- Yes, under Executive Order 12866
- Pages
- 23
Other documents from the Centers for Medicare & Medicaid Services
Everything from the Centers for Medicare & Medicaid Services · Rules on administrative practice and procedure · Rules on child support · Rules on claims · Published in May 2025
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