In the Feb. 22 Federal Register, CMS published a final rule on healthcare-related taxes under Section 1903(w) of the Social Security Act. The final rule revises the threshold from 6 percent of net patient revenue to 5.5 percent; clarifies the standard for determining the existence of a hold harmless arrangement under the positive correlation test, Medicaid payment test, and the guarantee test; codifies changes to permissible class of healthcare items or services related to managed care organizations; and removes obsolete transition period regulatory language. Download the rule.
