Budget Reconciliation Health Draft Text Released

On May 11, the House Energy and Commerce (E&C) Committee released the legislative text and summaries of the budget reconciliation plans to be considered this week. This committee oversees Medicaid and has been tasked with finding $880 billion in savings. Our national affiliate – the American Health Care Association (AHCA) – is reviewing the details. An initial look finds several areas of critical importance to our profession. The E&C draft legislation includes the following key provisions for long term care: 

• Freeze on Provider Taxes: This proposal puts a moratorium on current provider tax rates. AHCA’s understanding is that each state can keep its existing provider tax rate, but states will not be permitted to implement new increases to their current rates nor expand the categories of taxed entities to increase funds collected via these taxes.  
• 10-Year Delay of the Staffing Mandate: It appears Congress has come to the same conclusion as the profession and determined that the unrealistic staffing mandate should not be implemented or enforced. It’s written as a delay due to budget reconciliation rules.  

Please note: This is just the first version of legislation in a long budget reconciliation process. It is possible that the language and policies may change as this process unfolds, and we will continue to provide updates.