State responses on the reported uses of revenue from new health care provider taxes implemented in state fiscal years 2008 through 2012

State Number of health care provider taxes used to fund capitation payments to managed care organizations Number of health care provider taxes used to fund fee-for-service Medicaid payments Number of health care provider taxes used to fund Medicaid Disproportionate Share Hospital supplemental payments Number of health care provider taxes used to fund Medicaid non-Disproportionate Share Hospital supplemental payments Number of health care provider taxes used to avoid cuts in benefits or services Number of health care provider taxes used to expand benefits or services Number of health care provider taxes used for other purposes
Alabama 0 1 1 0 0 0 0
Alaska 0 0 0 0 0 0 0
Arizona 0 0 0 0 0 0 0
Arkansas 0 0 0 0 0 2 0
California 2 2 0 2 0 0 2
Colorado 0 0 2 3 2 2 0
Connecticut 0 0 0 0 0 0 4
Delaware 0 0 0 0 0 0 0
District of Columbia 1 2 0 0 3 0 0
Florida 0 3 0 0 2 0 0
Georgia 2 2 0 0 2 0 0
Hawaii 0 0 0 0 0 0 0
Idaho 0 0 0 4 4 0 0
Illinois 0 2 0 2 0 0 0
Indiana 0 1 0 0 0 0 0
Iowa 0 3 0 0 1 3 0
Kansas 1 1 0 1 0 0 0
Kentucky 0 0 0 0 0 0 0
Louisiana 0 0 0 0 0 0 0
Maine 0 0 0 0 0 0 0
Maryland 2 2 2 2 0 0 0
Massachusetts 0 0 0 0 0 0 0
Michigan 0 0 0 0 0 0 0
Minnesota 0 0 0 0 0 0 0
Mississippi 0 1 1 1 0 0 0
Missouri 0 1 0 0 0 0 0
Montana 0 0 0 0 0 0 0
Nebraska 0 1 0 0 0 0 0
Nevada 0 0 0 0 0 0 0
New Hampshire 0 0 0 0 0 0 0
New Jersey 0 0 1 0 0 0 0
New Mexico 0 0 0 0 0 0 0
New York 2 2 0 0 2 0 1
North Carolina 0 0 0 2 0 0 0
North Dakota 0 0 0 0 0 0 0
Ohio 1 1 0 1 1 0 0
Oklahoma 0 0 0 2 2 0 0
Oregon 0 0 0 0 0 0 0
Pennsylvania 0 1 1 3 1 1 0
Rhode Island 0 0 0 0 0 0 0
South Carolina 1 1 1 1 1 0 0
South Dakota 0 0 0 0 0 0 1
Tennessee 1 1 1 1 1 0 0
Texas 0 0 0 0 0 0 0
Utah 0 0 0 0 1 0 0
Vermont 1 0 0 0 0 0 0
Virginia 0 0 0 0 1 0 0
Washington 3 3 3 3 0 0 0
West Virginia 0 0 0 0 0 0 0
Wisconsin 3 3 0 2 3 3 0
Wyoming 0 0 0 1 0 0 0
Total revenue use 20 34 13 31 27 11 8

Source: GAO analysis of state-reported data. | GAO-15-227SP
Note: States could report multiple uses for each new tax. A total of 63 new provider taxes were implemented in 32 states from state fiscal year 2008 through state fiscal year 2012.

 

Definitions
 
MEDICAID PAYMENTS:
 
Fee-for-service Medicaid payments are Medicaid payments made by the state at the state's regular Medicaid rates for services provided.
Capitation payments to managed care organizations are fixed, predetermined payments made by the state to Medicaid managed care organizations for providing comprehensive medical services to Medicaid eligible individuals enrolled in managed care plans.
Medicaid Disproportionate Share Hospital supplemental payments are Medicaid payments to hospitals that serve a disproportionate share of low-income and Medicaid patients to help offset hospitals' uncompensated costs for serving these individuals.
Medicaid non-Disproportionate Share Hospital supplemental payments and other Medicaid payments are Medicaid upper payment limit (UPL) supplemental payments; payments made from funding pools created under Medicaid demonstrations, such as payments from low-income pools, uncompensated care pools, and similar special funding pools established and paid under Medicaid waiver authority; Medicaid Graduate Medical Education (GME) payments; and other payments, such as enhanced payment rates or bonus payments made to certain health care providers. In addition, this payment category included bundled payments, i.e. episodic Medicaid payments in which payments are based on a predetermined cost for a clinically defined bundle or episode of care.
 
SOURCES OF FUNDS FOR NONFEDERAL SHARE:
 
Health care provider taxes are taxes, licensures or other fees, assessments, or other mandatory payments, imposed on health care services or providers, as defined in Section 1903 of the Social Security Act and in 42 C.F.R. § 433.55 - Health Care-Related Taxes Defined.