One proposal under consideration to achieve federal budget savings would limit, and could ultimately eliminate, states’ use of provider taxes (also known as provider assessments). Provider taxes are legitimate tax revenues - paid by health care providers - used by 47 states and the District of Columbia to pay for the state share of Medicaid costs. They allow states to maintain a functioning Medicaid program. Cutting state use of provider taxes limits state flexibility in financing their Medicaid programs and will hurt patients. More information about provider taxes, as well as information for NAPH members on this issue, can be found below.