Federal provider tax restrictions: Without state action, billions in Medicaid funding are on the lineNew Medicaid finance restrictions from last summer’s federal budget bill (H.R. They are widely used to help finance Medicaid and to draw down federal matching funds for state Medicaid programs. 1 enacted several new provider tax restrictions. Ohio’s MCO provider tax puts us among 7 states dealing with looming funding losses because it is what’s known as a “non-uniform” provider tax. Simply put, a non-uniform tax has received a waiver to tax Medicaid plans and non-Medicaid plans at different rates.