Requirements Regarding Waiver of Uniform Tax Requirement for Medicaid Provider Tax
Section 71117 · Sec. 71117 ·
What this chapter is about
This part says when a provider tax is not spread fairly. A tax that lets off low Medicaid providers fails the test. So does one using words that reach the same result. It also defines three terms used in the test.
The document says “shall not”Who acts: Secretary of Health and Human ServicesHow: statuteSec. 71117 in the PDF
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:”
That sentence, in plain words
A tax is not spread fairly if any of the tests below is met. That is what the law calls not generally redistributive.
What this is about
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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“The term `tax rate group' means a group of entities contained within a permissible class of a health care related tax that are taxed at the same rate.”
The section adds new subparagraphs (H), (I) and (J) to section 1903(w)(7) of the Social Security Act. A Medicaid taxable unit is a unit taxed within a health care related tax that applies to the program, including units used as the basis for payment such as Medicaid bed days, Medicaid revenue, program costs and other units the Secretary determines. A non-Medicaid taxable unit is the mirror image. A tax rate group is a group of entities within a permissible class taxed at the same rate.
What the document actually says
“The term `tax rate group' means a group of entities contained within a permissible class of a health care related tax that are taxed at the same rate.”
That sentence, in plain words
The term covers a set of bodies taxed at one rate. They must sit within an allowed class of the tax.
What this is about
Two more terms are also defined. One covers units tied to Medicaid. The other covers units not tied to it.
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The document says “shall apply”Who acts: Secretary of Health and Human ServicesHow: statuteSec. 71117 in the PDF
What the document says
“The amendments made by this section shall take effect upon the date of enactment of this Act, subject to any applicable transition period determined appropriate by the Secretary of Health and Human Services, not to exceed 3 fiscal years.”
The section applies its amendments only to the 50 States and the District of Columbia and makes them effective on enactment, subject to any transition period the Secretary of Health and Human Services thinks right, up to three fiscal years.
What the document actually says
“The amendments made by this section shall take effect upon the date of enactment of this Act, subject to any applicable transition period determined appropriate by the Secretary of Health and Human Services, not to exceed 3 fiscal years.”
That sentence, in plain words
The changes start on the day this law passed. The Secretary may allow time to adjust. That time may not top three fiscal years.
What this is about
Islands and other lands are left out. Only the 50 states and the capital are covered. The time to adjust is the Secretary's call.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: set out when a tax is not generally redistributive, define a Medicaid taxable unit, a non-Medicaid taxable unit and a tax rate group, exclude territories, and fix the effective date with its transition period.
The first two conditions of the redistribution test, which are carried in a summary.
The section works by amending section 1903(w) of the Social Security Act, which is not indexed here, so what the uniform tax requirement otherwise says cannot be checked against anything on this site.
