Overview

• The Senate Finance Committee’s draft reconciliation bill would lower the Medicaid provider tax cap to 3.5 percent, down from the House’s 6 percent limit on new levies.
• GOP aides say the Senate version also tightens eligibility rules and restricts states’ use of provider taxes to draw down federal matching funds.
• Sens. Susan Collins, Josh Hawley, Jerry Moran and Lisa Murkowski have publicly voiced concerns that deeper cuts could harm their constituents and rural hospitals.
• Hospital associations from 13 states urged Senate leaders to retain the House-negotiated provider tax and state-directed payments provisions to sustain access to care.
• Senate Republicans can afford only three defections on a party-line reconciliation vote, placing the tougher Medicaid changes at risk.