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The Biden administration wants to crack down on private arrangements among some hospitals to reimburse themselves for taxes that help fund coverage for low-income people. It contends the practice violates federal law.

Federal regulators say these arrangements "appear designed to" redirect Medicaid dollars away from facilities that treat the poorest patients to those that "provide fewer, or even no, Medicaid-covered services," according to a proposed enforcement plan released May 3 by the Centers for Medicare & Medicaid Services.

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