GOP Leaders in Tennessee Legislature OK With Hospital 'Fee' But Not 'Tax'
March 12, 2010
Republican leaders of the Tennessee legislature would approve the Tennessee Hospital Association's plan to tax hospitals to boost federal Medicaid payments, but only if it is not called a tax, according to a report by the Memphis Commercial Appeal.
The 3.5 percent "coverage fee" would be levied on net patient revenue but would not be passed on to patients, the hospital association said.
Under a temporary enhancement in federal Medicaid match, the $230 million raised by the fee would produce $430 million more in federal funding.
Read the Memphis Commercial Appeal's report on Medicaid.
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