News
More than $1B Loss Projected in Ohio’s Next 2-Year Budget
By: Associated Press
Posted on:
COLUMBUS, Ohio (AP) – Ohio stands to lose more than $1 billion in the next two-year budget as it phases out a sales tax structure that hauled in hundreds of millions of dollars in federal Medicaid money.
Nearly $400 million in additional county and transit authority sales taxes are also projected to be lost.
Since 2009, Ohio has charged a sales tax on services provided through Medicaid managed-care organizations to benefit from federal matching funds.
Counties and transit authorities benefited through additional local sales taxes.
The federal Centers for Medicare & Medicaid Services two years ago prohibited taxing only managed-care companies that deal with Medicaid.
State officials say they’ll look at how other states deal with similar challenges.