The tax credit for nursing home beds was enacted last year as part of a scam to milk the federal government for more Medicaid money. All beds were taxed, including medicaid beds. That drove the cost of medicaid in nursing homes up by the amount of the tax. Since the federal government matches New Mexico's medicaid expenditures by $3 for each dollar the state spends, that meant more money from the federal government. The tax credit was put in place to refund the tax to those nursing home patients who were not on Medicaid.

I don't see how the Guv can get away with repealing the credit. It will raise the issue of the scam all over again; and taxing nursing home patients will not be politically popular.
Harry | Homepage | 01.13.05 - 5:12 pm | #

Good point, let's look into this further. Any ideas?
Tim | 01.19.05 - 1:12 pm | #