Alert detail

Medicaid Program; Preserving Medicaid Funding for Vulnerable Populations-Closing a Health Care-Related Tax Loophole

Policy ID: 2026-02040Specialty: MedicaidAdded: 6/2/2026Effective: February 2, 2026federal rule

Low

What changed

Final Rule published 2026-02-02. This final rule addresses a loophole in a regulatory statistical test applied to State proposals for Medicaid tax waivers. The test is designed to ensure, as required by statute, that non- uniform or non-broad-based health care-related taxes, authorized under a waiver, are generally redistributive. The inadvertent loophole currently allows some health care-related taxes, especially taxes on manage

Who’s affected: Medicaid billing teams · Effective: February 2, 2026

Primary source: View the official CMS/MAC document ↗

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