WASHINGTON, D.C. – Today, the Centers for Medicare & Medicaid Services (CMS) announced the approval of Van Orden’s request to grandfather the state’s six percent hospital provider tax, preserving enhanced federal Medicaid funding for hospitals across Wisconsin.

Prior to the passage of the One Big Beautiful Bill, Congressman Van Orden urged Governor Tony Evers in a letter highlighting the critical need to promptly enact Wisconsin’s FY 2025–2027 state budget so the state’s hospital provider tax increase could take effect before the anticipated federal deadline. In a letter to the Governor, Van Orden urged Evers to “act swiftly to sign the budget and secure the provider tax increase in time to meet this critical federal deadline.”

CMS’s announcement follows Congressman Derrick Van Orden’s continued advocacy with CMS and the Trump Administration to ensure Wisconsin qualified for the grandfathering protections included in the One Big Beautiful Bill (OBBB).  The approval allows Wisconsin to continue drawing down enhanced federal Medicaid matching funds and protects critical health care resources across the state. Without this action, Wisconsin’s enhanced federal Medicaid payments would have expired on October 1, 2026.

In addition, CMS approved Wisconsin’s Medicaid state plan preprint for all of calendar year 2026, ensuring the state will continue receiving the higher federal Medicaid reimbursement throughout the year.

“This is a major win for Wisconsin. When I learned Wisconsin hospitals were at risk of losing critical Medicaid funding, I immediately got to work with CMS and the Trump Administration to fix it. I fought to make sure Wisconsin’s provider tax was grandfathered exactly as intended under the One Big Beautiful Bill Act, and today that work paid off.With this rule, Wisconsin’s Medicaid reimbursement rate is jumping from 1.8% to 6%. This decision protects our hospitals and gives providers the certainty they need to continue caring for Wisconsin families.” Van Orden said.

During CMS Administrator Dr. Oz’s visit to Eau Claire, he stated “We’re going to make sure the Badger State is taken care of and that the funding that’s required to improve rural healthcare is at the level that it should be at,” and praised Van Orden for ensuring that Wisconsin’s provider tax rate was aligned with other states across the nation. 

For Wisconsin’s rural hospitals and health care providers, this decision provides critical stability and ensures they can continue serving patients in communities across the state. This approval is the latest example of Van Orden fighting to deliver for Wisconsin families and ensuring federal policies work for the communities he represents.

The proposed rule can be found here: https://www.federalregister.gov/public-inspection/2026-14897/medicaid-program-indirect-hold-harmless-threshold-of-health-care-related-taxes

A fact sheet on the proposed rule can be found here: https://www.cms.gov/newsroom/fact-sheets/amending-indirect-hold-harmless-threshold-health-care-related-taxes-proposed-rule-cms-2452-p