[Federal Register Volume 62, Number 199 (Wednesday, October 15, 1997)] [Rules and Regulations] [Pages 53571-53572] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-27194] ----------------------------------------------------------------------- DEPARTMENT OF HEALTH AND HUMAN SERVICES Health Care Financing Administration 42 CFR Part 433 [MB-113-F] RIN: 0938-AI30 Medicaid Program; Limitation on Provider-Related Donations and Health Care-Related Taxes; Revision of Waiver Criteria for Tax Programs Based Exclusively on Regional Variations; Correction AGENCY: Health Care Financing Administration (HCFA), HHS. ACTION: Correcting amendment. ----------------------------------------------------------------------- SUMMARY: This document contains a correction to the final regulations that were published in the Federal Register on August 13, 1993 (58 FR 43156). These regulations revised the Medicaid regulations relating to limitations on federal financial participation (FFP) in State medical assistance expenditures when States receive funds from provider-related donations and revenues generated by certain health care-related taxes. EFFECTIVE DATE: September 13, 1993. FOR FURTHER INFORMATION CONTACT: Jim Frizzera, (410) 786-9535. SUPPLEMENTARY INFORMATION: On August 13, 1993, we published final regulations that further implemented statutory provisions that limit the amount of Federal financial participation (FFP) available for medical assistance expenditures in a fiscal year when States receive funds donated from providers and revenues generated by certain health care related taxes. The August 13, 1993 final rule amended on interim final rule that was published in the Federal Register on November 24, 1992 that established in regulations the statutory limitations. In general, the statute specified the types of health care related taxes that a State is permitted to receive without a reduction in FFP. Such taxes are broad-based taxes that apply in a uniform manner to all health care providers in a class, and that do not hold providers harmless for their tax costs. If, however, a State tax is not broad- based and uniform, a State may submit a waiver application to us requesting that we [[Page 53572]] treat its tax as a broad-based and uniform health care-related tax. A State application may be approved if the State established that, among other things, the tax is generally redistributive. We established in the regulation the waiver criteria under which we will determine whether a tax, that does not meet the statutory defined broad-based or uniform requirements, is generally redistributive. As published, the regulation at 42 CFR 433.68(e)(2)(iv) contains an error in the percentage amount necessary to demonstrate that a State tax that varies, based exclusively on regional variations, and enacted and in effect prior to November 24, 1992, is generally redistributive and can be considered to meet the criteria for waiver of the uniform tax requirement. List of Subjects in 42 CFR Part 433 Administrative practice and procedure, Child support, Claims, Grant programs--health, Medicaid, Reporting and recordkeeping requirements. Accordingly, 42 CFR part 433 is corrected by making the following correcting amendment: PART 433--STATE FISCAL ADMINISTRATION 1. The authority citation for part 433 continues to read as follows: Authority: Secs. 1102, 1137, 1902(a)(4), 1902(a)(18), 1902(a)(25), 1902(a)(45), 1902(t), 1903(A)(3), 1903(d)(2), 1903(d)(5), 1903(o), 1903(p), (1903(r), 1903(w), 1912, and 1919(e) of the Social Security Act (42 U.S.C. 1302, 1320b-7, 1396a(a)(4), 1396a(a)(18), 1396a(a)(25), 1396a(a)(45), 1396a(t), 1396b(a)(3), 1396b(d)(2), 1396a(d)(5), 1396b(i), 1396b(o), 1396b(p), 1396b(r), 1396b(w), and 1396k.) Sec. 433.68 [Corrected] 2. In Sec. 433.68, paragraph (e)(2)(iv), remove the percentage ``0.85'' and add in its place ``0.70''. (Catalog of Federal Assistance Program No. 93.778, Medical Assistance Program) Dated: September 12, 1997. Neil J. Stillman, Deputy Assistant Secretary for Information Resources Management. [FR Doc. 97-27194 Filed 10-9-97; 4:00 pm] BILLING CODE 4120-01-M