Policy

Senate GOP plan targets Medicaid expansion by slashing provider tax limits

State lawmakers may be forced to raise other taxes, cut benefits or reduce program enrollments.
Maryland Del. Joseline Pena-Melnyk, a Democrat who chairs the Maryland House and Government Operations Committee, speaks at a news conference on Thursday, May 11, 2023 in Annapolis, Md. in front of the Maryland State House. (AP Photo/Brian Witte)

Republicans in the U.S. Senate want to squeeze funding for Medicaid expansion by restricting taxes most states rely on to fund health care benefits for low-income people. 

The draft Senate version of an omnibus budget bill would, like the House version, freeze taxes on providers such as hospitals and nursing homes, prevent states from adding new provider taxes and eliminate such taxes altogether. 

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