Arizona hospitals are weighing a tax on themselves as an alternative to sharp cuts in the state's Medicaid program.
Kristin Davis, spokeswoman for the Arizona Hospital and Healthcare Association, confirmed Monday that the group is looking at a way to raise hundreds of millions of dollars through some sort of levy. She declined to spell out exactly what form that would take or how much it would raise.
The aim, though, is to forestall the proposal by Gov. Jan Brewer to alter the eligibility standards for the Arizona Health Care Cost Containment System. That change, which the governor hopes to implement on Oct. 1, would save the state about $540 million for the coming fiscal year and potentially $1 billion the following year.
That move has provoked stiff opposition from the hospitals who would lose the reimbursement they now get from the state when an AHCCCS-eligible patient is treated there. Brewer's plan would cut total enrollment, now close to 1.2 million, by about 280,000.
On the other side of the equation, hospital officials said those who no longer qualify for free care would instead wait until their conditions are severe and show up for treatment in emergency rooms. Federal law prohibits hospitals from denying treatment to anyone in an emergency situation regardless of ability to pay.
"We are working on an option for the governor and legislative leaders to consider,'' Davis said.
While the details have not been formally unveiled, Senate President Russell Pearce, R-Mesa, said he can't support the idea.
"They're not taxing themselves,'' he said.
"They're willing to tax the people who use their services,'' Pearce said, with the cost passed along in higher charges. "It's not money out of their own pocket.''
Gov. Jan Brewer said she met with hospital officials two weeks ago and told them "they needed to find a solution'' if they want to avoid slicing the number of people enrolled in AHCCCS. But the governor said she's not sure, from what she's heard so far, the plan being considered for a "bed tax'' on hospital bills will work.
"From what I understand, the bed tax is probably not going to be enough from what has been presented to me to generate the kind of dollars that they're going to need,'' she said.
This isn't the first time hospitals have proposed new taxes.
Last year, when lawmakers first considered rolling back AHCCCS eligibility, the association proposed a surcharge on incomes greater than $150,000 a year for individuals and $300,000 for couples. That plan would have raised $174 million a year.
But the plan was quickly shelved amid legislative opposition.
soricobob posted at 5:57 am on Tue, Jan 25, 2011.
Wait a minute, taxes can levy taxes? Does this mean that other non-profit agencies can do the same (i.e. the YMCA, Girl Scouts).
mrs_de posted at 6:52 am on Tue, Jan 25, 2011.
Most hospitals are for profit. I'm so glad that the hospitals think I can afford an increase in my insurance premiums since Aetna won't eat the cost of a "bed tax".
JackSheet posted at 7:00 am on Tue, Jan 25, 2011.
Shuffle the money around enough and anyone can lose track. Tax, endow, entitle, penalize, supplement and insure. Funny the stuff that politicians will do to make it look like they are looking out for you. Not funny how well it works on the unthinking masses. I used to blame the politicians, but I can see pretty clearly who the fools are now. Gee, I think we should cut money for education, too.
rrffcc1 posted at 7:40 am on Tue, Jan 25, 2011.
"Gov. Jan Brewer said she met with hospital officials two weeks ago and told them "they needed to find a solution'' if they want to avoid slicing the number of people enrolled in AHCCCS."
Feels sort of like blackmail. The Healthcare sector certainly profits from AHCCCS, but the benefits were put in place by the public, the voters. Seems odd, too, in that the hospitals are one part of a very large business system (healthcare businesses) that the Gov & Company are threatening with a serious reduction in revenues. So, Jan, your intended victim has to come up with the solution? We hired you to make threats and someone else has to resolve the situation? Really?
Think that voting machine will look 'way different next time I see it. I'll try to find the grip, and trigger and look down the sightline.
Rich posted at 8:03 am on Tue, Jan 25, 2011.
Welcome to government managed healthcare. By 2016 you'll have to take out a second mortgage if you have an earache. There will be a bed tax, a bedpan tax, pay toilets, thousand dollar apiece aspirin tablets, and mandatory fees for valet parking. And the government will cover less and less of it, claiming that "the inflation guidelines" are being followed and a COLA isn't necessary. Everyone should be happy, everyone is covered, well except if you get sick.
rrffcc1 posted at 8:12 am on Tue, Jan 25, 2011.
Comment #2: Now, for the Healthcare folks -- Are you kidding? Have you taken complete leave of your senses? Out of the thousands upon thousands of smart, experienced people working for you, the best you can up with is a tax on services, which would hardly cost you a thin dime?
Simple cause and effect - higher charges to insurance companies result in higher premiums to consumers and their employers.
I realize a politician would love it in that there's no clear blame to assign, but in these times and with the current economic issues facing us to make such a suggestion is inane at best. Better to've not answered at all.
Besides - you shouldn't have been asked.
091468mr posted at 8:51 am on Tue, Jan 25, 2011.
I agree with Pearce on this one. Just like any retailer, the hospitals will pass the tax on to the consumer-untilmately me (NOT my insurance company as those slugs pay nothing). And I'm sick to death of supporting illegals, et al who don't work. Let them leave AZ and go to California where they're welcome even though they've bankrupted that state. BTW, there is no such thing as a "non profit" hospital.
Cerulean posted at 10:41 am on Tue, Jan 25, 2011.
And the other thing to consider Governess Brewer is that this is a temporary problem. In 2014 the Affordable Health Care Act will incorporate and cover most of those who are currently using AHCCCS. In two -three years will we see this 'bed tax' disappear? Or will it just end up costing everyone a lot more for ever.