Hospitals and state reach settlement over Medicaid tax funds

The tax is a method for landing millions of federal dollars to finance health care

By: Meera Mahadevan

Outlets: Granite State News Collaborative

Published: June 13, 2025

Words: 433

Last Updated: 1 month, 3 weeks ago

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Less than two months after New Hampshire hospitals sued the state over the legality of a Medicaid tax imposed on hospitals, the two parties have reached a settlement that both say will benefit patients.

At issue was a dispute over how much money hospitals receive back from the so-called NH Medicaid Enhancement Tax, or MET. The state imposes an annual 5.4% MET on hospitals’ net patient revenues to help bring matching dollars to New Hampshire …

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