Senate Republicans are requesting a federal investigation into whether a proposed tax increase for Maryland hospitals violates an agreement with the federal government that allows the state to set healthcare costs, according to a Washington Post report.
Maryland Gov. Martin O'Malley has proposed a hospital tax hike that would raise approximately $300 million to pay for Maryland residents on Medicaid. The plan, which would increase the rate hospitals pay into a pool by 2.5 percent, would help pay for around 900,000 residents.
Senate Republicans say the proposal shifts the state's budget problems to the federal government and essentially taxes the federal government to pay for Maryland Medicaid. A spokesman for the governor said the plan does not violate the agreement between Maryland and the federal government.
House lawmakers tentatively approved the plan next week. It now awaits approval by the Senate and a review from a panel of House and Senate experts.
Read the Washington Post report on Maryland tax hikes.
Read more on hospital taxes:
-Vermont Hospitals Oppose Planned Medicaid Cuts, Provider Tax Increase
-Proposed Arizona Budget Scales Back Medicaid Cuts But Doesn't Include Hospital Tax
Maryland Gov. Martin O'Malley has proposed a hospital tax hike that would raise approximately $300 million to pay for Maryland residents on Medicaid. The plan, which would increase the rate hospitals pay into a pool by 2.5 percent, would help pay for around 900,000 residents.
Senate Republicans say the proposal shifts the state's budget problems to the federal government and essentially taxes the federal government to pay for Maryland Medicaid. A spokesman for the governor said the plan does not violate the agreement between Maryland and the federal government.
House lawmakers tentatively approved the plan next week. It now awaits approval by the Senate and a review from a panel of House and Senate experts.
Read the Washington Post report on Maryland tax hikes.
Read more on hospital taxes:
-Vermont Hospitals Oppose Planned Medicaid Cuts, Provider Tax Increase
-Proposed Arizona Budget Scales Back Medicaid Cuts But Doesn't Include Hospital Tax