Discouraging Senate Budget Fails to Address Medicaid Provider Tax
States can still fleece federal taxpayers by pumping up prices on services to Medicaid
PHILADELPHIA, Pa. — Americans for Prosperity – Pennsylvania is discouraged by the budget released by the Senate Budget Committee this morning, which fails to resolve structural deficits or provide tax relief to all Americans. It also fails to address Medicaid provider tax schemes, which are allowing costs for the program to spiral out of control — and which even President Obama had addressed in previous budget requests.
AFP-PA State Director Jennifer Stefano released the following statement:
“It’s discouraging that the Senate will not address a problem that even President Obama saw fit to solve in previous budget requests,” Stefano said. “Medicaid provider taxes allow states and hospitals to collude to raise the prices of health care services to Medicaid patients in order to draw down more federal matching funds. These schemes may be legal, but they are grossly unfair to federal taxpayers, and they make it easier for states to bear the costs of undergoing the dramatic expansion of Medicaid called for under the president’s health care law.
“Pennsylvanians are ill-served by the other provisions in this budget, too. It solidifies the $620 billion in taxes that were in the fiscal cliff deal forced through Congress, and piles another $1.5 trillion in revenue on top of that– while doing little to resolve our long-term structural deficits.”
For more information on the Medicaid provider tax, take a look at AFP’s video, “The Medicaid Funding Scam.”
For more information or comment, contact Jennifer Stefano at PAMedia@afphq.org.
Americans for Prosperity (AFP) is a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans. For more information, visit www.americansforprosperity.org