[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR433.70]



[Page 89]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 433_STATE FISCAL ADMINISTRATION--Table of Contents

 

     Subpart B_General Administrative Requirements State Financial 

                              Participation

 

Sec.  433.70  Limitations on level of FFP for revenues from health 



care-related taxes after the transition period.



    (a) Limitations. (1) Subsequent to the end of a State's transition 

period (as defined in Sec.  433.58(b)), and extending through September 

30, 1995, the maximum amount of health care-related taxes specified in 

Sec.  433.68 that a State may receive during a State fiscal year (or 

portion thereof), without a reduction in FFP, is limited to--

    (i) The greater of 25 percent or the State base percentage as 

described in Sec.  433.60(b); multiplied by

    (ii) The State's share of total medical assistance expenditures for 

the State fiscal year, less all health care-related taxes other than 

those described in Sec.  433.68 that are deducted separately pursuant to 

paragraph (b) of this section.

    (2) Beginning October 1, 1995, there is no limitation on the amount 

of health care-related taxes that a State may receive without a 

reduction in FFP, as long as the health care-related taxes meet the 

requirements specified in Sec.  433.68.

    (b) Calculation of FFP. CMS will deduct from a State's medical 

assistance expenditures, before calculating FFP, revenues from health 

care-related taxes that do not meet the requirements of Sec.  433.68 and 

any health care-related taxes in excess of the limits specified in 

paragraph (a)(1) of this section.