President Donald Trump - J.D. Vance Administration

Exclusive Study – Healthcare Provider Tax Freeze in One Big Beautiful Bill Would Reward Blue States that Provide Health Care to Illegal Aliens​


The House-passed One Big Beautiful Bill Act’s measure to freeze state-imposed healthcare provider taxes would, ironically, punish fiscally conservative states and reward blue states such as California and New York.

Neurosurgeon and healthcare expert Dr. Anthony DiGiorgio, who was recently affiliated with the Mercatus Center, studied the effects of the House-passed One Big Beautiful Bill Act’s freeze of state-imposed healthcare provider taxes and found that it may, ironically, punish states that have been the most fiscally responsible and reward overspending states that provide coverage to illegal aliens.

Provider taxes are taxes on hospitals and nursing facilities that states use to help fund their Medicaid programs. The problem with the House-passed One Big Beautiful Bill’s freeze, according to DiGiorgio, is that many irresponsibly spending states such as California and New York have already jacked up provider taxes to the six-percent limit allowed by federal law, while the freeze would prevent responsible states from potentially raising their lower provider taxes to meet future Medicaid spending needs.

 
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