Illustration: Tiffany Herring/Axios
Senate Republicans are considering delayed implementation of a Medicaid provider tax crackdown to get around roadblocks facing their reconciliation draft, Sen. John Hoeven told reporters after a GOP lunch Friday.
Why it matters: The comments indicate Republicans are not backing off their plans to freeze taxes and lower the safe-harbor threshold — or bowing to demands to revert to the softer House-passed language.
Driving the news: There would also be a new stabilization fund for rural hospitals that could be hurt by the Senate provider tax plan, with a higher dollar amount than the $15 billion that was originally proposed, Hoeven said, though he noted there is not yet an exact figure.
- "We would essentially look at delaying the freeze language for a year," Hoeven said, as well as the "rampdown" in the safe harbor for the provider tax.
- He said that would help comply with Byrd Rule issues that derailed the original Senate language, and also could help ease policy concerns from some Republican senators.
- "[The delay] and a fund for rural hospitals may help satisfy some of our members," he said.
- Senators expressed optimism they could remedy the Byrd Rule concerns without major changes, but there has not been a final ruling from the parliamentarian.
Yes, but: It's still not clear that the new proposal would deliver the votes needed for passage.
- Several GOP senators had called for going back to the softer House language, which only froze the provider tax, without limiting the safe harbor from 6% to 3.5% like the Senate bill.
- Sen. Thom Tillis said Friday that he is currently a no on the bill, citing the "fiscal impact on North Carolina" of the Medicaid provisions.
- "I have not heard that there's going to be any foundational change," to the provisions, he said, adding "they know my vote."
What's ahead: Senators could take an initial vote on a revised bill as soon as Saturday.
Stef Kight contributed reporting.
