Association Shares Provider Tax FAQ

America's Essential Hospitals published FAQ on the provider tax provisions in the Working Families Tax Cut legislation (WFTCL) and the preliminary guidance issued in November 2025.

The WFTCL prohibits new provider taxes and increases in current provider taxes and phases down existing provider taxes in Medicaid expansion states. It also changes the rules for provider tax uniformity waivers in all states. The Centers for Medicare & Medicaid Services (CMS) issued preliminary guidance interpreting the WFTCL provider tax changes but acknowledges that a definitive interpretation of the legislative language requires CMS rulemaking.

The FAQ explain the hold harmless limit, the grandfathered provider taxes, definitions in the November 2025 guidance, pending waivers, and tax uniformity waiver requirements.

Contact Director of Policy Rob Nelb, MPH, at [email protected] or 202.585.0127 with questions.