In a recent editorial, the Washington Post called for the federal government to reform the provider taxes that most states use to help finance their Medicaid programs.
Provider taxes essentially enable states to increase the effective rate at which the federal government matches their Medicaid spending.  Past efforts to limit provider taxes have failed, but the Post calls for reform to be phased in over a number of years.
Pennsylvania currently levies two such taxes:  a state-wide hospital assessment and a Philadelphia assessment.  Both are important parts of the financing of the state’s Medical Assistance program.  Provider taxes are thought to be on the table during the current fiscal cliff negotiations between the Obama administration and congressional leaders.
Read the Washington Post editorial on Medicaid provider taxes here.