The Managed Care Tax Replacement: Implications for Northeast Ohio and the State Budget
Loren C. Anthes, MBA, Public Policy Fellow, Center for Medicaid Policy
February 8, 2017
A look at the Managed Care replacement tax, the long-term implications and future challenges.
- One of the main reasons for the creation of the new Medicaid Health Insurance Corporation (MHIC) tax was the fact that the Centers for Medicare and Medicaid Services (CMS) would not accept the current Managed Care tax as a way for the State of Ohio to draw down federal funds.
- With the new MHIC tax generating $740 million, potentially leveraging a total of $2.2 billion in federal funds, the new distribution of $207 million to the counties represents roughly 7%of the total $2.9 billion generated.
- With the formula outlined by the administration, almost all counties and all of the regional transit systems would see some sort of loss relative to the experience they would have had otherwise.