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.
The Columbus Dispatch reports (http://bit.ly/29g7Z56 ) 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.
Information from: The Columbus Dispatch, http://www.dispatch.com