Medicaid Bed Taxes and Institutional Bias: Where Does Your State Stand?

via SteveGoldADA.blogspot.com (5.23.11):

Medicaid Bed Taxes and Institutional Bias.

Information Bulletin #333

by Steve Gold

In FY 2010, nearly $13.5 billion dollars were generated in 37 States as Medicaid “Provider Taxes,” a/k/a, Bed Taxes, Fees, and/or Assessments. At a minimum, these bed taxes generated another $13.5 billion federal match and more that States received.

What are Medicaid Bed Taxes and why should advocates for older and disabled Americans care?

37 States levy Medicaid provider/bed taxes against nursing homes (they can also be levied on hospitals or ICF beds). The $13.5 billion broken at the end of this Bulletin does not distinguish among NH, ICF or hospitals.

Often, bed taxes are based on, for example, the total number of nursing home beds in a nursing home. That is, a State requires each nursing home to pay the State a specific amount of money for each nursing home bed per day. We heard recently that one State taxed nursing homes $10 per nursing home bed per day whether or not the bed was even occupied.

The State then uses revenues generated from these “bed taxes” to bring down federal Medicaid funds, i.e., the federal match.

Here’s what happens over time. After a few years of these bed taxes, the federal reimbursement generated from nursing home bed taxes are then used to draw down more federal funds. (A type of Ponzi scheme?)

>>>For the Full Article and To See a List of 2010 Bed Taxes

What implications do you feel bed taxes have for the future of Medicaid?

Please share your thoughts in comments below...