Department of Health and Human Services, Centers for Medicare and Medicaid Services: Medicaid Program; Health Care-Related Taxes
GAO-08-532R: Mar 10, 2008
- Full Report:
GAO reviewed the Department of Health and Human Services, Centers for Medicare and Medicaid Services' (CMS) new rule on the Medicaid program's health care-related taxes. GAO found that (1) the final rule revises the collection of threshold under the regulatory indirect guarantee hold harmless arrangement test to reflect the provisions of the Tax Relief and Health Care Act of 2006; when determining whether there is an indirect guarantee under the 2-prong test for portions if fiscal years beginning on or after January 1, 2008, and before October 1, 2011, the allowable amount that can be collected from a health care-related tax is reduced from 6 to 5.5 percent of net patient revenues received by the taxpayers; and it clarifies the standard for determining the existence of a hold harmless arrangement; and (2) CMS complied with the applicable requirements in promulgating the rule.