Summary
President Donald Trump's administration finalized a new rule to close a Medicaid financing loophole. This rule aims to prevent states from using certain tax structures that shifted costs to federal taxpayers. The change is projected to save the federal government over $78 billion in ten years.
Key Facts
- President Trump's administration introduced a rule to close a Medicaid financing loophole.
- The Centers for Medicare & Medicaid Services (CMS) say the loophole allowed states to shift costs to federal taxpayers.
- The new rule stops states from using higher taxes on Medicaid providers to draw extra federal funding.
- CMS Administrator Dr. Mehmet Oz stated that the rule will ensure Medicaid funds benefit vulnerable people instead of favored providers.
- The loophole generated about $24 billion yearly for states, impacting the federal Medicaid partnership.
- Closing the loophole is expected to save the federal government more than $78 billion over the next decade.
- States have been given timelines until 2028 to comply with the new rule, depending on their current tax structures.
