Issue Briefs , Reports | Mar 22, 2016

Provider Donations and Assessments: Options for Funding State Costs of Medicaid Expansion

Deborah Bachrach and Anne Karl, Manatt Health

Provider assessments, fees, and taxes are tools available to states to generate funds to cover the non-federal share of Medicaid payments.  This issue brief, developed by the State Network team at Manatt Health, examines two revenue sources that states may utilize to fund the non-federal share of Medicaid expansion: provider assessments and provider donations.  Both of these are authorized by federal law and have been used by states in connection with Medicaid expansion.  The issue brief summarizes the rules regarding their use and describes the ways in which they have been utilized in several states.  This report is part of an ongoing series of issue briefs examining the fiscal implications of Medicaid expansion.  Other installments in this series have analyzed the budget savings and revenue gains realized in expansion states, as well as issue briefs investigating the impact of expansion on uncompensated care and criminal justice-related costs.