Budget Reconciliation Update

• By: Ben Hawkins
• On: 05/15/2025 14:57:05
• In: Legislative/Government Affairs

Earlier this week, the House Energy and Commerce (E&C) Committee released a legislative proposal that outlined its portion of the budget reconciliation package. This committee oversees Medicaid and had been tasked with finding over $880 billion in savings raising significant concerns about cuts to Medicaid.

While there is still a lot that can change, the proposal puts a moratorium on current provider tax rates. AHCA/NCAL has shared that its understanding is that each state can keep its existing provider tax rate, but states will not be permitted to implement any increases to current rates or expand the categories of taxed entities to increase funds collected via these taxes. Maine's provider tax rate is 6%.

In additional good news, the unrealistic staffing mandate as proposed by CMS is delayed for 10 years. It is written in the proposal as a delay due to budget reconciliation rules.

Additional amendments to the budget proposal will occur and ultimately both the House and the Senate must agree on a final package so the path ahead could be challenging.

Staff contact: awesthoff@mehca.org