How California Uses Medicaid to Rip You Off.

States like California and New York are taking advantage of a funding loophole in Medicaid to generate extra revenue. They do this by levying taxes on healthcare providers and using the revenue to fund Medicaid, which then triggers additional federal matching aid. California, in particular, has implemented a tax on managed-care organizations that generates billions of dollars for the state. While the Centers for Medicare and Medicaid Services has tried to prevent these tactics, states are finding ways to exploit the system before the loophole is closed. Some are proposing block grants as an alternative solution to financing Medicaid. [Extracted from the article]