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Medicaid in Context: Payment and Financing

This session is the second part of our two-part presentation on Medicaid key statistics, trends, and financing. In this session, MACPAC provided a refresher on Medicaid payments and financing, including background information on the non-federal share of Medicaid financing. The presentation focused on how states may use permissible sources of financing, such as provider taxes and intergovernmental transfers, to fund a large portion of the non-federal share of supplemental and directed payments that can be used to target specific policy goals. While supplemental and directed payments may increase provider revenues over base payments, using provider financing for the non-federal share can affect the amount of revenue providers have to cover their costs.