'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

Assisted living communities continue to make a terrible first impression on prospective customers, university program finds

Assisted living communities continue to make a terrible ...

Assisted living communities consistently do not make a good first impression with prospective customers, and they haven't improved this skill set in the last decade, according to data from George ...

Latecomers to hospice frequently are male, have certain cancers, Penn researchers find

Men and patients with certain types of cancer are among those less likely to enroll in hospice, suggesting that healthcare providers should focus on presenting these groups with all their end-of-life care options, according to newly published findings.

Nursing homes should think twice before using a well-known tool for diagnosing ...

A familiar tool for diagnosing depression in dementia patients might not be very effective in the nursing home setting, according to findings recently published in The American Journal of Geriatric Psychiatry.