New York officials are preparing for a legal battle after the federal government moved to reverse approval of a $3.7 billion Medicaid insurer tax, according to Spectrum News. The state included $1.47 billion from the tax in this year’s budget, relying on a policy now in jeopardy under the Trump administration.
The tax was meant to support health care providers like nursing homes and safety-net hospitals. Critics say the funding stream was always risky, while state officials insist they won’t back down without a court fight. Gov. Hochul’s administration argues Republicans are threatening critical social programs.
The outcome could reshape how states fund Medicaid, with major political and fiscal implications in New York and beyond.
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