Medicaid State Directed Payments and Provider Taxes are Critical for Children’s Hospitals

Medicaid State Directed Payments and Provider Taxes are Critical for Children’s Hospitals

Children's Hospital Association urges Congress to reject policies that would reduce Medicaid payments to children’s hospitals or restrict states’ use of provider taxes.

Congress is discussing potential reductions to states’ use of state directed payments (SDPs) and restrictions on how states can use provider taxes in efforts to reduce federal Medicaid expenditures.

SDPs are critical in ensuring access to care for the 37 million children covered by the Medicaid/CHIP program, especially at children’s hospitals. Provider taxes are used by states to finance their share of the Medicaid program. With children making up close to 50% of total Medicaid enrollees, even small adjustments in SDPs and/or states’ use of provider taxes would result in negative consequences for children covered by Medicaid, as well as the providers who care for them, including children’s hospitals.

Children's Hospital Association urges Congress to reject policies that would reduce Medicaid payments to children’s hospitals or restrict states’ use of provider taxes.

Hand

Contact Us

For more information, connect with us.

(202) 753-5333
(202) 753-5366

Related Content

CHA Submits Comments in Response to Medicaid Provider Tax Proposed Rule

Provider taxes are important mechanisms used to fund programs and support providers that treat a large volume of Medicaid patients, including children’s hospitals.

July 15, 2025

CHA Urges House of Representatives to Vote ‘No’ on Reconciliation Bill

The final bill up for a vote in the House pushes Medicaid cuts too far, will hurt children’s care.

July 03, 2025

CHA Urges ‘No’ Vote on Reconciliation Bill and Medicaid Cuts

The final Senate budget reconciliation bill goes much further to cut Medicaid and children’s health care access.

July 01, 2025