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In this episode of the Budget & Tax News podcast, Buckeye Institute for Public Policy Solutions analyst Joe Nichols joins the show to explain how several states are trying to cheat the system and profit from Medicaid expansion. States like Ohio and Pennsylvania apply sales and use taxes to Medicaid premiums, in order to boost revenue and increase the amount of federal grant money provided.
However, Nichols says, the federal government may soon close this “loophole,” which the Office of the Inspector General of the Department of Health and Human Services declared was illegal. Preventing the application of sales taxes to Medicaid premiums in Ohio, he says, will make Medicaid expansion an even worse deal for the state’s taxpayers.