AHA files amicus brief in case challenging HHS, CMS on provider taxes

The AHA drafted and filed an amicus brief June 17 in the 5th U.S. Circuit Court of Appeals in a case regarding Medicaid financing and provider taxes filed by the state of Texas against the Department of Health and Human Services and the Centers for Medicare & Medicaid Services. The AHA argued that by improperly expanding the scope of what constitutes a prohibited "hold harmless" arrangement, CMS and HHS are purposely disregarding a portion of a federal statute on guaranteed arrangements for payments. The AHA is advocating for affirmance of the district court ruling that vacated portions of a 2023 informational bulletin from CMS on healthcare-related taxes and hold harmless arrangements, as well as related portions of a 2024 final rule pertaining to Medicaid and Children's Health Insurance Program managed care.

The Children's Hospital Association, the Association of American Medical Colleges and the Federation of American Hospitals joined the AHA in the filing.