Maine governor outlines hospital tax to fund Medicaid expansion

Maine Republican Gov. Paul LePage proposed an increase on the hospital tax rate to fund the voter-approved Medicaid expansion, according to The Charlotte Observer.

Maine voters approved Medicaid expansion in November, though Mr. LePage has repeatedly blocked the measure. However, in June a judge ordered Mr. LePage to move forward with the expansion.

The new plan would raise hospital tax rates from 2.23 percent to as much as 6 percent. Mr. LePage's administration argues the Medicaid expansion would offset the increase by cutting down on charity care.

The Maine Hospital Association has said state hospitals already pay $100 million annually in taxes and would oppose any additional increases.

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