Question of the Month

Question of the Month - July 2003

June 2003	May 2003	April 2003	March 2003
February 2003	January 2003	November/December 2002	October 2002

Question:
What Southern states have implemented nursing facility provider taxes and at what rates; where may state provider tax revenues and attendant federal matching assistance be directed; and what amount of revenue, prior to the federal match, has been raised from the tax over the past five state fiscal years?

Nursing Home Provider Tax Rates and Appropriations June 2003

State	Tax Rate	Where May Provider Tax Revenues and Federal Medical Assistance Monies be Spent
Alabama	$1,200 per licensed bed, per year	Any Medicaid service payment
Arkansas	$6.86 per occupied bed, per day	Medicaid-certified nursing facilities
Georgia	Per occupied bed, per day	Medicaid disproportionately share nursing facilities
Kentucky	2% of facility’s gross receipts	Any Medicaid service payment
Louisiana	$6.27 per occupied bed, per day	Any Medicaid service payment
Mississippi	$4.00 per licensed bed, per day	Any Medicaid service payment
Missouri	$7.30 per day, per occupied bed	Medicaid-certified nursing facilities
Oklahoma	$6.40 per day, per occupied bed	Specified by statute
Tennessee	$2,225 per licensed bed, per year	Facilities, home- and community-based services
West Virginia	5.5% of a facility’s gross receipts	No response from state

Southern State Nursing Facility Provider Tax Revenues, Federal Match and Approximated Total Funds, State Fiscal Years 1998-2002

State	SFY 1998	SFY 1999	SFY 2000	SFY 2001	SFY 2002
Alabama Provider Tax Revenues	$29,278,405	$29,392,612	$29,833,610	$30,203,698	$30,615,936
FMAP	69.32%	69.27%	69.57%	69.99%	70.45%
Approximate Federal Match	$66,169,195	$66,133,377	$68,199,632	$70,435,023	$72,991,292
Total Approximate Funds	$95,447,600	$95,525,989	$98,033,242	$100,638,721	$103,607,228
Arkansas Provider Tax Revenues	NA	NA	NA	$6,267,142	$27,503,148
FMAP	NA	NA	NA	73.02%	72.64%
Approximate Federal Match	NA	NA	NA	$16,961,702	$73,020,054
Total Approximate Funds	NA	NA	NA	$23,228,844	$100,523,202
Kentucky Provider Tax Revenues	$19,819,016	$19,509,056	$21,518,405	$21,080,474	$23,396,359
FMAP	70.37%	70.53%	70.55%	70.39%	69.94%
Approximate Federal Match	$47,069,327	$46,690,659	$51,549,184	$50,113,292	$54,435,840
Total Approximate Funds	$66,888,343	$66,199,715	$73,067,589	$71,193,766	$77,832,199
Louisiana Provider Tax Revenues	$48,028,176	$55,099,733	$56,099,196	$62,012,877	$62,832,242
FMAP	70.03%	70.37%	70.32%	70.53%	70.30%
Approximate Federal Match	$112,225,998	$130,859,541	$132,914,268	$148,414,259	$148,724,128
Total Approximate Funds	$160,254,174	$185,959,274	$189,013,464	$210,427,136	$211,556,370
Mississippi Provider Tax Revenues	$13,000,000	$13,000,000	$14,000,000	$14,000,000	$16,000,000
FMAP	77.09%	76.78%	76.80%	76.82%	76.09%
Approximate Federal Match	$43,743,780	$42,986,219	$46,344,828	$46,396,894	$50,917,608
Total Approximate Funds	$56,743,780	$55,986,219	$60,344,828	$60,396,894	$66,917,608
Missouri Provider Tax Revenues	$93,600,000	$95,600,000	$105,700,000	$119,400,000	$116,700,000
FMAP	60.68%	60.24%	60.51%	61.03%	61.06%
Approximate Federal Match	$144,446,796	$144,842,656	$161,962,699	$186,989,530	$182,991,834
Total Approximate Funds	$238,046,796	$240,442,656	$267,662,699	$306,389,530	$299,691,834
Oklahoma Provider Tax Revenues	NA	NA	NA	$46,800,000	$56,500,000
FMAP	NA	NA	NA	71.24%	70.43%
Approximate Federal Match	NA	NA	NA	$115,926,008	$134,572,033
Total Approximate Funds	NA	NA	NA	$162,726,008	$191,072,033
Tennessee Provider Tax Revenues	$103,300,000	$102,500,000	$102,800,000	$101,700,000	$86,000,000
FMAP	63.36%	63.09%	63.10%	63.79%	63.64%
Approximate Federal Match	$178,632,314	$175,202,520	$175,790,786	$179,161,640	$150,523,652
Total Approximate Funds	$281,932,314	$277,702,520	$278,590,786	$280,861640	$236,523,652

Source: Nursing facility provider tax revenues were submitted directly by the states in response to the survey for this report. FMAPs provided by the United States Department of Health and Human Services, Federal Medical Assistance Percentage Web site: http://aspe.hhs.gov/health/fmap.htm, accessed February 14, 2003.

Notes: Approximate federal match monies are calculated using the state revenues and the federal FMAP for the coinciding federal fiscal year using the formula: ((FMAP/(1-FMAP)) x state revenue). For simplification purposes, enhanced medical assistance percentages and/or any disputed federal medical assistance funds are not figured into calculations.