Reports: Ending 'Medicaid Money Laundering' Would Save Hundreds of Billions

If Congress is serious about cutting $880 billion in Medicaid spending, ending what one study calls a "money-laundering" tactic being used by states would do at least most of the trick.

A study released earlier this month by The Hilltop Institute shows that eliminating Medicaid provider taxes — a loophole in the state funding formula that plows hundreds of billions of extra federal dollars into state budgets — would cut nearly $84 billion in federal Medicaid spending next year alone.