Georgia Senate votes to extend Hospital Bed Tax
The Georgia Senate voted Thursday to extend the hospital bed tax to lengthen the period of time the state of Georgia can collect revenues based on hospital patients and close a Medicaid funding gap of nearly $900 million.
Senate Bill 70, sponsored by Governor Deal’s floor leader Butch Miller, extends the hospital Medicaid financing program through 2020. The program was set to expire in 2017, meaning revenues would cease to be collected.
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The bill passed 50-3, with Senators Bill Heath, Josh McKoon, and Judson Hill voting NO. Three Senators did not cast a vote. The legislation moved through the upper chamber rather quickly, passing completely by the 12th legislative day.
The type of program is particularly popular in many other states across the country, but in Georgia, the health department collects an estimated $280 million each year from its hospitals by levying a 1.45 percent tax on net profits and uses the funds to draw down almost $600 million in matching Medicaid funds. The program does exempt psychiatric and state-owned hospitals from the tax, but can be very costly for others.
Read more: http://evans.allongeorgia.com/jack-hill-votes-to-extend-hospital-bed-tax/