'Bed tax' reform threat looms

Share this article:

Nursing homes could be hurt if the federal government lowers the Medicaid provider tax safe harbor threshold to reduce the national deficit, according to a January report from the Congressional Research Service.

The White House's 2013 budget proposes lowering the threshold to 3.5% from 6%, limiting states' abilities to fund Medicaid through the so-called “bed tax” and reducing matching federal Medicaid funds. 

This might cut federal payments by $21.8 billion from 2015 to 2022, according to White House estimates. 

The nursing home lobby has campaigned hard against any lowering of the bed tax ceiling.

“This is a significant source of income for providers who already face a significant shortfall in Medicaid reimbursement,” said American Health Care Association spokesman Greg Crist. 

Share this article:

More in News

Medicare rates could be adjusted for start and end of hospice care ...

Medicare payments could be adjusted to reflect how hospice services tend to be more intensive at the beginning and end, according to findings recently published by the Centers for Medicare & Medicaid Services Office of Information Products & Data Analytics.

Nursing home resident dies after allegedly being smothered by son

A terminally ill nursing home resident in Ohio has died after his son is alleged to have smothered him, according to police.

Medicare should pay for skilled nursing services without a qualifying hospital stay, experts tell Senators

Medicare should pay for skilled nursing services without ...

The time has come to eliminate hospital stay requirements for beneficiaries to qualify for Medicare coverage of skilled nursing services, experts told a Senate committee Wednesday.