Georgia Governor Asks for Tax on Hospitals, Payors to Cover Medicaid Losses

Facing a $608 million shortfall in Medicaid funds for the next fiscal year, Georgia Gov. Sonny Purdue is urging state legislators to adopt a new tax on hospitals and health plans, according to a report by the Atlanta Journal-Constitution.

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The state would levy a 1.6 percent “fee” on total revenues.

The state said the gap will arise from an increase in Medicaid recipients and a fall-off in funds from federal stimulus funding and the national tobacco settlement.

Read the Atlanta Journal-Constitution’s report on the hospital tax.

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