In a letter to the Joint Select Committee on Deficit Reduction, better known as the supercommittee, the American Hospital Association and other hospital groups urged that two proposals regarding Medicaid financing be rejected.
One proposal would create a single "blended rate" for all populations and services, and the other would limit states' use of provider taxes to fund the non-federal share of Medicaid costs.
AHA and others said "there is no basis in sound public policy for the federal government to arbitrarily reduce its share of Medicaid spending," and limiting provider taxes would only hurt the states' "flexibility in financing their Medicaid program."
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One proposal would create a single "blended rate" for all populations and services, and the other would limit states' use of provider taxes to fund the non-federal share of Medicaid costs.
AHA and others said "there is no basis in sound public policy for the federal government to arbitrarily reduce its share of Medicaid spending," and limiting provider taxes would only hurt the states' "flexibility in financing their Medicaid program."
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