Thune in the Capitol. Photo: Allison Robbert / Bloomberg via Getty Images
Senate Majority Leader John Thune is defending efforts to crack down on the way states use Medicaid provider taxes, calling it a "loophole" that states can use to boost federal funding without taking a hit to their budgets.
Why it matters: It's notable that Thune is proactively making the case for the provider tax reductions amid divisions in his caucus over language in the reconciliation package, though he isn't ruling out changes to win over holdouts.
What they're saying: "The provider tax and state-directed payments are important reforms," Thune told reporters Tuesday when asked about the Medicaid concerns.
- "We think they rebalance the program in a way that provides the right incentives to cover the people who are supposed to be covered by Medicaid," he added.
- In separate remarks Tuesday on the Senate floor, Thune even challenged Democrats, asking "Do they think there should be any limits on states exploiting the provider tax loophole?"
Yes, but: Thune left some wiggle room for changing the provisions to win over votes.
- "The goal, as you all know, is to get 51 [votes] here in the United States Senate and 218 in the House, and so ultimately that's the math that I'm working with," he told reporters.
