The tax was levied to add to the state’s Medicaid fund that would then boost federal matching dollars that would flow back into hospitals. Gov. Malloy, who faces a $1.6 billion budget gap, has said with new Medicaid expansion federal money and an expected dip in the uninsured population thanks to the health law and subsidies available through the online health insurance exchanges, hospitals will be able to withstand the tax.
It’s not the first time he and hospital leaders in his state have butted heads. Last month, he criticized the size of hospital executive compensation packages, saying they’ve “exploded” and reward only short-term gains.
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