Medicaid Experts Reject Claims That Provider Taxes Constitute Fraud As Congress Eyes Cuts

By Jalen Brown / April 25, 2025 at 6:17 PM

As Republicans on Capitol Hill eye federal cuts to Medicaid, a group of experts at a KFF virtual panel on Medicaid fraud and abuse -- including a state Medicaid director, a former HHS Inspector General and a senior MACPAC official -- pushed back Thursday (April 24) against claims that state provider taxes are a “money laundering scheme” and emphasized instead these taxes are legitimate policy tools explicitly permitted under federal law.



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