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First published on March 27, 2008, doi:10.1177/1077558708315968

Medical Care Research and Review 2008;65:514.

A more recent version of this article appeared on August 1, 2008
 © 2008 SAGE Publications

Article

Medicaid Nursing Home Payment and the Role of Provider Taxes

David C. Grabowski*, Zhanlian Feng, Orna Intrator, and Vincent Mor

Harvard Medical School

* To whom correspondence should be addressed. E-mail: grabowski{at}med.harvard.edu.


  Abstract
In the context of recent state budget shortfalls and the repeal of the Boren Amendment, state Medicaid expenditures for nursing home care were considered a potential target for payment cuts. The authors examine this issue using data from a survey of state nursing home payment policies. Results indicate that aggregate inflation-adjusted Medicaid payment rates steadily increased through 2004, and this growth is partly attributable to the adoption of nursing home provider taxes in many states. A recent proposal to cap provider taxes, if enacted, may lead to a decrease in Medicaid payment rates for nursing home care.


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