2 fixes offered to NH Medicaid Enhancement Tax
The plan is to give lawmakers time to decide how to replace the MET and consider all the changes in the health care system including the federal Affordable Care Act, Medicaid expansion and waivers the state is seeking to get more Medicaid matching grants for services to the poor.
Then the Republican led Legislature in 2011, dealing with a budget crisis, stopped paying most hospitals back leading to layoffs and the elimination of services at hospitals across the state. St. Joseph Hospital of Nashua and two other hospitals sued, saying the tax is unfair.
The House passed its two part plan (SB 369) 247 28.
The pending Senate proposal cuts the 5.5 percent tax on hospitals by one quarter of 1 percent a year; by mid 2018 the tax would be cut to 4 percent.
Hess likened it to winning a high stakes card game.
The Rosenwald fix clarifies the original legislative intent for the 5.5 percent tax on hospitals and defends not applying it to other health care providers.
The current MET generates about $185 million a year for Medicaid and other state spending. The New Era Mlb Caps state kept $72 million of it this year to balance the budget, used $82 million to make payments to health care providers and returned $31 million to hospitals to offset some of the cost of uncompensated or free care.
Hospital executives were fine with it for 20 years as the legal scheme had the state repay them for paying the tax often within hours of sending the check.
The Morse plan lowers the state's take from the tax to $17.3 million in the state budget year that begins July 1, 2015.
care costs and should be done away with.
"This is an attempt to get the tax to zero over a period of time," Nike Cap Boys
Adopted in 1991, the hospital tax generated a record amount of increased federal grants for the state from Medicaid.
"Progressive forward looking thought sees this as an opportunity to reduce paperwork, reduce tax burden and the cost of medical care by eliminating the MET," Ulery said.
Senate President Chuck Morse is offering that proposal in hopes to get enough of the diverse group of executives from all hospitals to sign onto it.
CONCORD A combination of two possible fixes to a state hospital tax found unconstitutional in two courts cleared the House of Representatives on Wednesday.
to 5 percent.
Hess claimed expanding the tax would be revenue neutral as the tax would be cut down Nike Hats Boys
"It puts more cards on the table for the House of Representatives,'' Hess said. "If you have more cards at the table, then you can play more cards and you have a better chance of winning."
State Reps. Cindy Rosenwald, D Nashua, and David Hess, R Hooksett, offered competing plans to fix the Medicaid Enhancement Tax.
Meanwhile, the state Senate is expected Thursday to embrace a very different response to the court fight, a gradual cut in the tax while increasing Medicaid grants paid to hospitals.
Rep. Jordan Ulery, R Hudson, said the hospital levy is a sales tax that only increases health Ny Cap Black
The Hess plan that's contingent on the first not being acceptable in court would extend the tax to four new types of health providers including privately run ambulance services, laboratories and therapists with revenues of more than $500,000 per year.
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