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SB 2695

Medicare certified long-term acute care hospitals; exempt from the hospital provider assessment subject to approval by CMS.

2026 Regular Session

Exempts Medicare-certified long-term acute care hospitals from Mississippi's hospital provider assessment tax, subject to CMS approval, potentially reducing state healthcare revenue.

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Bill Summary · SB 2695

Legislative bill overview

SB 2695 would exempt Medicare-certified long-term acute care (LTAC) hospitals in Mississippi from paying the hospital provider assessment (a state tax on hospital revenues), but only if the Centers for Medicare & Medicaid Services (CMS) approves the exemption. LTACs are specialized facilities serving patients who need extended hospital-level care, typically those recovering from critical illness or with complex medical needs.

Why is this important

Hospital provider assessments generate significant state revenue used for Medicaid and other healthcare programs. Exempting LTACs could reduce state revenue while potentially affecting the tax burden on other hospitals that would continue paying. Conversely, supporters argue LTACs operate on thin margins and serve vulnerable patient populations, making exemption justified.

Potential points of contention

  • Revenue impact: Exempting LTACs reduces state tax collection, requiring either budget cuts elsewhere or increased burden on remaining hospitals
  • CMS approval uncertainty: The exemption's contingency on federal approval creates implementation ambiguity and may not be achievable without federal policy changes
  • Equity concerns: Other hospital types (rural hospitals, critical access hospitals) may argue they deserve similar exemptions, creating precedent pressure

Compiled from official sources — confirm details with the bill’s official record.

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