Taxes on Doctors and Hospitals

North Carolina lawmakers consider hospital or provider tax to help close budget gap.

The AP (4/12, Robertson) reports that North Carolina lawmakers "are returning to Raleigh early to begin adjusting the second year of the state's two-year budget, and they are intrigued by a hospital or provider tax or fee because it could draw down three times as much extra money in federal matching funds for Medicaid." A number of "hospital and doctors' lobbying groups in North Carolina oppose the idea, although they would receive higher Medicaid payment rates as part of any bargain." Still, the "discussions are preliminary and final revenue decisions" are "at least two months away."

This is constantly happening these days.  As more and more state budgets are looking for revenues these physician taxes are going to be continually brought up.  What people fail to understand is the Federal Government pays less than 26 cents on the dollar.  This is in the face of a Sustainable Growth Rate formula that is flawed.  The formula pays doctors.  Each year a fix has to be put into place because of threatened cuts in payments to physicians who care for Medicare patients.  I am heading to Capitol Hill tomorrow to try and get some information regarding future plans to eliminate this formula or replace it with another.  Each year I have traveled to Capitol Hill over the past several years no one has been very interested in discussing this issue or others related to Medicare.  I am interested to see their level of interest now!