On November 14, the Centers for Medicare & Medicaid Services (CMS) issued preliminary guidance for states regarding the implementation of new federal requirements on health care-related (provider) taxes in Medicaid that are laid out in the Working Families Tax Cuts legislation (Public Law 119-21).
CMS will develop additional policies, guidance, and implementing regulations. The letter provides details regarding limits on new or increased healthcare-related (provider) taxes. It also includes information about transition periods related to the closure of a financing loophole and the next steps for compliance.
States with questions about this guidance or needing technical assistance should email taxwaiver@cms.hhs.gov.