Bookmark and Share

July 2008

New SCI Issue Brief on Provider Taxes

A new SCI publication, “Can a Sales Tax on Medical Services Help Fund State Coverage Expansions?” by Elliot K. Wicks, Ph.D., a senior consultant at Health Management Associates, is now available online. This brief encourages states to consider a medical sales tax—or provider tax—as one financing mechanism for expanding coverage. Because provider tax revenue grows with medical spending, it is more stable and less susceptible to changes in the business cycle. In addition, it is less likely to decrease demand for services than other sales taxes might, and it has the potential to recapture savings from uncompensated care that are no longer being provided in a more comprehensive coverage environment.