'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

'Minor' issues at the nursing home can cause disastrous care transitions, expert warns

'Minor' issues at the nursing home can cause ...

What may appear to be minor administrative problems in a nursing home - a fax machine locked away at night or no one designated to copy paperwork - can cause ...

Long-term care facilities approach 80% worker flu vaccination rate after handing power ...

Fourteen long-term care facilities in Pennsylvania dramatically increased their staff flu vaccination rate by having a regional pharmacy take over the process, according to a report issued Thursday by the Agency for Healthcare Quality and Research (AHQR).

RACs were 'most improved' healthcare auditors for getting back money in 2013, ...

Medicare Recovery Audit Contractors dramatically stepped up their overpayment recoveries last year, returning nearly $487 million more to the government than they did in 2012, according to a new report from a federal watchdog agency.