Ohio Administration Proposes Changes to State's Medicaid Managed Care Organization Sales Tax

March 07, 2017

When the state of Ohio released its proposed budget for the next two fiscal years, a significant provision was tucked away that aims to deal with a $597 million shortfall in FY2018. In 2009, Ohio began levying a sales tax on Medicaid Managed Care Organizations (MCOs). In sum, this was the mechanism that Ohio, and a number of other states, used to draw down federal Medicaid dollars.