'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

Genesis, Skilled Healthcare merger to create huge long-term care provider with more than 500 facilities

Genesis, Skilled Healthcare merger to create huge long-term ...

Genesis HealthCare and Skilled Healthcare Group Inc. will merge to create a single long-term and post-acute care company with more than 500 facilities nationwide, the providers announced Tuesday.

Antipsychotic use tied to acute kidney injury, increasing pressure on nursing home ...

Older people who take antipsychotic medications are at a markedly increased risk of acute kidney injury, according to newly published research findings out of Canada. The study further supports ongoing efforts to reduce the number of nursing home residents on these drugs.

Family alleges long-term care facility banned them due to social media posts, ...

Family members of a Texas long-term care resident have sued the facility where she lives, claiming they were banned from visiting due to their social media posts, according to a publication covering legal proceedings in the state.