Some New Hampshire Hospitals Pay Less in Medicaid Enhancement Taxes in Response to Cuts

Some New Hampshire hospitals have begun to follow federal standards under the Medicaid Enhancement Tax that will send less money to the state, according to a Concord Monitor report.

New Hampshire was expecting $97 million in those taxes in November but only received $47 million, a move that was in response to the state's cuts to Medicaid reimbursements, according to the report. Previously, the MET revenue was returned to hospitals through the Disproportionate Share Hospital program, but those reimbursements were cut in the state budget, which prompted 10 hospitals to file suit against the state.


The New Hampshire Hospital Association asked CMS this past summer what inpatient and outpatient services are taxable under federal regulations, and the state guidelines expected higher tax revenue, according to the report. As such, several hospitals paid under the federal guidelines.

New Hampshire's Senate Ways and Means Committee, the Department of Revenue Administration and the Department of Health and Human Services plan to meet next week and address the shortfall in tax revenue and discuss the tax rule discrepancies.

Related Articles on New Hampshire Medicaid:

New Hampshire's LRG Healthcare to Stop Accepting Medicaid Patients

States Capping Medicaid Coverage on the Rise

Two New Hampshire Hospitals Change Eligibility Guidelines for Charity Care in Face of Medicaid Cuts

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