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Partnership for Medicaid Urges CMS to Preserve Medicaid Access in Provider Tax Rule

September 22, 2026
Julie Kozminski

In a Sept. 21 letter to the Centers for Medicare & Medicaid Services (CMS), the Partnership for Medicaid urged the agency to withdraw several proposals in the Amending the Indirect Hold Harmless Threshold of Health Care-Related Taxes proposed rule that would compromise access to care for Medicaid beneficiaries.   

The Partnership for Medicaid is a nonpartisan, nationwide coalition of organizations representing clinicians, health care providers, safety net health plans, and counties. The coalition’s goal is to preserve and improve the Medicaid program. America’s Essential Hospitals signed on to this joint letter along with 13 other organizations. 

The letter urges CMS to: 

  • Continue prospective calculation of hold harmless threshold compliance 
  • Align provisions with state fiscal years 
  • Not amend how provider taxes are used beyond what is required in the statute 
  • Account for the impacts of this rule on enrollment and benefits 

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.