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Study: Health Law's Tax On Insurers Will Take Bite Out Of Medicaid
Kaiser Health News - February 1, 2012

Under the health care overhaul, the federal government will begin taxing itself and the states beginning in 2014.

And that's giving state Medicaid directors heartburn.

The law calls for a new tax on health insurers' premium revenue --intended to help pay for expansion of coverage to 32 million uninsured Americans.  But the tax will be paid by all insurers, including those that contract with states to provide coverage to recipients of Medicaid, the state-federal health insurance program for the poor. Under federal law, that fee must be paid by the Medicaid program, meaning that state and federal governments must pick up the tab.