Healthcare Innovation November 18, 2025
CMS’s recent announcement outlines federal requirements for healthcare provider taxes in Medicaid
Last week, the Centers for Medicare & Medicaid Services (CMS) announced that it is issuing preliminary guidance to states regarding the implementation of new federal requirements on healthcare-related (provider) taxes in Medicaid.
According to the news release, providing this guidance gives states time to plan their efforts to meet the requirements outlined in the Working Families Tax Cuts (WFTC) legislation (Public Law 119-21) while CMS develops additional policies, guidance, and implementing regulations.
CMS will generally ban new or increased healthcare-related taxes and stop financing practices that previously allowed some states to improperly draw federal matching funds.
Key program elements and preliminary guidance on sections 71115 and 71117 are:
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