NHHA President Steve Ahnen Responds to Claims of MET Tax Shortfall
CONCORD – Reports of a potential shortfall in the NH Medicaid Enhancement Tax (MET) should come as no surprise to anyone. Hospitals have been saying for over a year now that when federal rules are applied to New Hampshire’s MET, tax revenue would decline.
In order to qualify for matching federal dollars, federal rules are very specific about provider taxes such as New Hampshire’s MET, and hospitals have been working closely with the federal Centers for Medicare and Medicaid Services (CMS), the federal agency charged with overseeing the Medicaid program, to ensure that their tax filings are consistent with federal guidelines. Despite attempts by hospitals to work with State officials to ensure compliance with these federal rules, the guidance issued by the State continues to be in direct contradiction to that of the written guidance issued by CMS to the hospitals in June of this year.
The State of New Hampshire is putting hospitals in an impossible position in making their Medicaid Enhancement Tax payments by having to choose whether they file according to federal guidelines or by the state-issued guidelines that are in clear contradiction of the federal guidance. Since July, State officials have repeatedly assured hospitals that they would be working with CMS and would provide clarity to them with regard to these matters.
Despite the fact that the MET was due over a month ago, hospitals have been provided with absolutely no further guidance or clarity by the State of New Hampshire regarding the calculation of the MET to ensure compliance with federal guidelines.