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Committee advances bill to change billing treatment for MiVIA waiver services, analysts say federal match would offset part of state cost
Summary
Lawmakers advanced House Bill 357 directing how gross‑receipts tax (GRT) is handled for certain Medicaid waiver services (MiVIA). Sponsors said adjusting billing will reduce inequities for rural recipients and generate increased federal Medicaid match; analysts said the change raises Medicaid spending but increases federal revenue.
The committee voted to advance House Bill 357 after sponsors and provider representatives described a long‑running disparity between providers who collect gross‑receipts taxes and nonprofit providers who do not. Sponsors said that difference reduces the amount of services available to participants in the MiVIA waiver program in counties with higher local GRT rates.
Presenters said the bill does not create a GRT exemption but instead changes billing and payment treatment so the value taken by local gross‑receipts taxes is accounted for within the Medicaid waiver budget for those enrolled in MiVIA services. Joel Davis, vice president of Elevate the Spectrum, said the bill would cost the state an investment estimated at about $7.2 million in fiscal year 2026 but would generate an estimated $18.3 million in federal Medicaid matching funds at a roughly 72 percent federal match rate.
Testimony from providers described services MiVIA supports: community‑based supports, therapies (occupational, physical, speech), employment supports and in‑home services that help individuals live more independently. Witnesses said privately owned providers have expanded service availability into rural areas but that charging GRT reduces the effective budget participants can use for direct services.
Committee members asked for clarification about program eligibility and the mechanics of payment; sponsors explained MiVIA is a waiver program for individuals with qualifying disabilities who require supports that enable community living and employment. Sponsor witnesses and a registered provider said the policy change would allow more uniform service access across counties with different GRT rates and would increase federal Medicaid reimbursement.
After public comment from at least one MiVIA participant and a municipal official describing local needs, the committee voted to advance the bill. The committee record shows a roll call with a majority in favor.
