A tax that lets off low Medicaid providers is not redistributive
What the document says“a tax is not considered to be generally redistributive if any of the following conditions apply:”
The section adds a new clause (iii) to section 1903(w)(3)(E) of the Social Security Act setting out when a tax is not generally redistributive, including where within a permissible class the rate on a taxpayer or tax rate group defined by its relatively lower volume or share of Medicaid business is treated differently, and where the tax excludes or lowers the rate on a group by any description that has the same effect. Terminology that may indicate that includes defining a group by payments or spending under the program without using the word Medicaid, or one that closely approximates such a group.
What the document actually says“a tax is not considered to be generally redistributive if any of the following conditions apply:”
A tax is not spread fairly if any of the tests below is met. That is what the law calls not generally redistributive.
One test looks at rates set by how much Medicaid work a provider does. Another looks at wording that reaches the same result. Avoiding the word Medicaid does not help.
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