Federal

Protect Local Taxpayers Act of 2023

Source: Congress.gov · 377 words in original text

What This Bill Does

This bill changes how states handle increases in federal funding for Medicaid (a health insurance program for low-income people). The bill requires states to share increased federal funds with local governments and counties that helped pay for the program. The goal is to ensure fair treatment of these local political subdivisions (smaller government units that contribute money).

Who It Affects

Political subdivisions (local governments, counties, and other local government units) that contribute money toward state Medicaid spending.

Key Provisions

• States must distribute increases in federal funding to each local subdivision that contributed to Medicaid costs, in proportion to how much that subdivision paid (Sec. 2) • This requirement applies unless the state agrees to share the increased federal funding based on each subdivision's contribution ratio (Sec. 2)

What Changes

States can no longer keep all the increased federal funding for themselves. When the federal government increases its share of Medicaid costs for a state, that state must now distribute its portion of those increases to local subdivisions based on how much money each subdivision originally contributed.

Important Definitions

Political subdivisions: Smaller government units (like counties and local governments) that have authority within a state.

Effective Date

January 1, 2024 (for increases in federal funding for medical assistance provided in calendar quarters beginning on or after this date).

I 118TH CONGRESS 1ST SESSION H. R. 2600 To amend title XIX of the Social Security Act to ensure the equitable treatment of political subdivisions contributing to State expenditures under the Medicaid program. IN THE HOUSE OF REPRESENTATIVES APRIL 13, 2023 Mr. LANGWORTHY (for himself, Ms. TENNEY, and Mr. WILLIAMS of New York) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend title XIX of the Social Security Act to ensure the equitable treatment of political subdivisions contrib- uting to State expenditures under the Medicaid program. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protect Local Tax- 4 payers Act of 2023’’. 5 VerDate Sep 11 2014 03:39 Apr 20, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2600.IH H2600 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2600 IH SEC. 2. ENSURING THE EQUITABLE TREATMENT OF POLIT- 1 ICAL SUBDIVISIONS CONTRIBUTING TO 2 STATE EXPENDITURES UNDER THE MED- 3 ICAID PROGRAM. 4 (a) IN GENERAL.—Section 1905(cc) of the Social Se- 5 curity Act (42 U.S.C. 1396d(cc)) is amended— 6 (1) in the first sentence, by striking ‘‘if it re- 7 quires’’ and all that follows through the period and 8 inserting ‘‘unless, with respect to amounts received 9 by the State attributable to such increases, the State 10 agrees to distribute to each such subdivision an 11 amount that bears the same ratio to such amounts 12 received as such contribution of such subdivision 13 bears to such non-Federal share of expenditures.’’; 14 and 15 (2) in the third sentence, by striking ‘‘, except 16 that’’ and all that follows through the period and in- 17 serting a period. 18 (b) EFFECTIVE DATE.—The amendments made by 19 subsection (a) shall apply with respect to increases in the 20 Federal medical assistance percentage of a State for med- 21 ical assistance furnished in calendar quarters beginning 22 on or after January 1, 2024. 23 Æ VerDate Sep 11 2014 03:39 Apr 20, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H2600.IH H2600 pbinns on DSKJLVW7X2PROD with $$_JOB

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