Gov. Arnold Schwarzenegger is still considering whether he will sign legislation that would levy a fee from hospitals in order to pay the state’s match for Medicaid, called Medi-Cal in California.
In addition to strong opposition to the proposal from the state Chamber of Commerce and anti-tax groups, state law mandates that 40 percent of any new “tax” goes to schools.
California hospitals, which requested the proposed fee, said they lost more than $4.2 billion in 2008 due to unpaid Medi-Cal costs.
A lobbyist for the California hospitals reported that 24 states are using similar provider levies to cover the state share of Medicaid payments, at a time when states are struggling with budgets and the federal government has sweetened its Medicaid match.
The federal government will pay 62 percent of Medicaid costs, rather than the usual 50 percent match, during 2009 and 2010.
Read the Los Angeles Times’ report on California Medicaid matching grants.
