[Federal Register Volume 62, Number 199 (Wednesday, October 15, 1997)]
[Rules and Regulations]
[Pages 53571-53572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27194]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration

42 CFR Part 433

[MB-113-F]
RIN: 0938-AI30


Medicaid Program; Limitation on Provider-Related Donations and 
Health Care-Related Taxes; Revision of Waiver Criteria for Tax Programs 
Based Exclusively on Regional Variations; Correction

AGENCY: Health Care Financing Administration (HCFA), HHS.

ACTION: Correcting amendment.

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SUMMARY: This document contains a correction to the final regulations 
that were published in the Federal Register on August 13, 1993 (58 FR 
43156). These regulations revised the Medicaid regulations relating to 
limitations on federal financial participation (FFP) in State medical 
assistance expenditures when States receive funds from provider-related 
donations and revenues generated by certain health care-related taxes.

EFFECTIVE DATE: September 13, 1993.

FOR FURTHER INFORMATION CONTACT:
Jim Frizzera, (410) 786-9535.

SUPPLEMENTARY INFORMATION: On August 13, 1993, we published final 
regulations that further implemented statutory provisions that limit 
the amount of Federal financial participation (FFP) available for 
medical assistance expenditures in a fiscal year when States receive 
funds donated from providers and revenues generated by certain health 
care related taxes. The August 13, 1993 final rule amended on interim 
final rule that was published in the Federal Register on November 24, 
1992 that established in regulations the statutory limitations.
    In general, the statute specified the types of health care related 
taxes that a State is permitted to receive without a reduction in FFP. 
Such taxes are broad-based taxes that apply in a uniform manner to all 
health care providers in a class, and that do not hold providers 
harmless for their tax costs. If, however, a State tax is not broad-
based and uniform, a State may submit a waiver application to us 
requesting that we

[[Page 53572]]

treat its tax as a broad-based and uniform health care-related tax. A 
State application may be approved if the State established that, among 
other things, the tax is generally redistributive. We established in 
the regulation the waiver criteria under which we will determine 
whether a tax, that does not meet the statutory defined broad-based or 
uniform requirements, is generally redistributive.
    As published, the regulation at 42 CFR 433.68(e)(2)(iv) contains an 
error in the percentage amount necessary to demonstrate that a State 
tax that varies, based exclusively on regional variations, and enacted 
and in effect prior to November 24, 1992, is generally redistributive 
and can be considered to meet the criteria for waiver of the uniform 
tax requirement.

List of Subjects in 42 CFR Part 433

    Administrative practice and procedure, Child support, Claims, Grant 
programs--health, Medicaid, Reporting and recordkeeping requirements.

    Accordingly, 42 CFR part 433 is corrected by making the following 
correcting amendment:

PART 433--STATE FISCAL ADMINISTRATION

    1. The authority citation for part 433 continues to read as 
follows:

    Authority: Secs. 1102, 1137, 1902(a)(4), 1902(a)(18), 
1902(a)(25), 1902(a)(45), 1902(t), 1903(A)(3), 1903(d)(2), 
1903(d)(5), 1903(o), 1903(p), (1903(r), 1903(w), 1912, and 1919(e) 
of the Social Security Act (42 U.S.C. 1302, 1320b-7, 1396a(a)(4), 
1396a(a)(18), 1396a(a)(25), 1396a(a)(45), 1396a(t), 1396b(a)(3), 
1396b(d)(2), 1396a(d)(5), 1396b(i), 1396b(o), 1396b(p), 1396b(r), 
1396b(w), and 1396k.)


Sec. 433.68  [Corrected]

    2. In Sec. 433.68, paragraph (e)(2)(iv), remove the percentage 
``0.85'' and add in its place ``0.70''.

(Catalog of Federal Assistance Program No. 93.778, Medical 
Assistance Program)

    Dated: September 12, 1997.
Neil J. Stillman,
Deputy Assistant Secretary for Information Resources Management.
[FR Doc. 97-27194 Filed 10-9-97; 4:00 pm]
BILLING CODE 4120-01-M