Fox News reports that the Build Back Better bill passed by the House includes a provision that would cut Disproportionate Share Hospital (DSH) payments across Kansas and 11 other states that haven’t expanded Medicaid coverage. DSH payments support hospitals that serve large numbers of patients who utilize Medicaid or are uninsured.
Florida Senator Rick Scott told the Washington Times it would hurt low-income families as part of the same legislation that would restore tax deductions for wealthy, mostly blue state residents. The Tax Cuts and Jobs Act passed in 2017 placed a $10,000 limit on the federal deduction for state and local taxes (SALT). The Build Back Better plan increases the cap to $80,000.
Certified financial planner Matthew Benson, the owner at Sonmore Financial in Chandler, Arizona, told CNBC that the SALT cap increase “will have the biggest effect on high-income-tax states like New York, California, and New Jersey.”
Allowing a federal deduction for state income tax high-income-tax states effectively causes taxpayers in other states to subsidize taxes in states like California and New York.
BBB would cut hospital funding across predominantly right-leaning states that haven’t expanded Medicaid coverage. DSH payments support hospitals that serve large numbers of patients who utilize Medicaid or are uninsured.
The Senate hasn’t voted on Build Back Better. Its version of the bill is expected to be different from the House version, but there is no indication of whether it will include the DSH payment cut.
This is the latest in our series of stories outlining the negative impacts of Build Back Better on Kansans.