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Assembly members press on Medicaid, MCO tax risks and nursing‑home funding
Summary
On the floor, lawmakers pressed the Assembly majority about the managed care organization (MCO) tax and risks to the federal Medicaid match; Chairman Pretlow said the Assembly expects those funds but acknowledged contingency planning could be needed and outlined capital investments for nursing homes.
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Representative Jensen led questioning on the MCO tax that the Assembly projects to use for federal Medicaid matching funds and called the structure a "legalized money laundering scheme" in his description on the floor. Jensen asked what would happen to money already collected from managed care organizations if the federal government later denied prior approval; Pretlow answered on the record, "I really don't know what had if if we have the money already... I'm being informed that we would more than likely give it back if the federal government made those, took the money back or canceled the program," while also signaling the Assembly expects the match to be available.
Members also pressed for details on nursing home supports. Pretlow said the one‑house proposal includes $1.0 billion in capital for nursing home infrastructure, a $192.5 million figure tied to vital access provider assurances (VAP) and additional capital rate add‑ins. He told colleagues the Assembly would pursue incremental increases and cited the capital and VAP funding as a partial restoration compared with prior requests.
Lawmakers flagged the uncertainty of federal policy and asked the majority to bring contingency plans into negotiations. Pretlow repeatedly framed the document as a policy direction for later negotiation rather than a final settlement of every implementation detail.
