Medicare payments to public and nonprofit hospitals

From the 2024 DOR Tax Exemption Study

82.04.43395(1) - Accountable communities of health Description Accountable Communities of Health (ACHs) may take a B&O tax deduction for Medicaid delivery system reform incentive payments and transformation project funding distributed by the Health Care Authority (HCA) through Medicaid demonstration project number 11-W-00304/0. The Centers for Medicare and Medicaid Services (CMS) approved the project in accordance with Sec. 1115(a) of the Social Security Act. The Patient Protection and Affordable Care Act allows for CMS to approve demonstration projects giving states flexibility to design and improve their Medicaid programs. These projects intend to demonstrate and evaluate state- specific experimental policy approaches to determine whether there are alternative means to better serve Medicaid populations. Projects must be budget neutral to the Federal Government. For the purposes of this deduction, an ACH is a regional nonprofit designated by the HCA to work together with the health care delivery system, health plans, public health, social services, community-based organizations, the justice system, schools, tribal partners, and local government leaders to improve the health equity