Napolitano wants Medicare funds reauthorized

Arizona stands to lose $32 million next year in federal funds used to compensate local hospitals, ambulance companies and emergency room physicians for care provided to illegal immigrants.

In a recent letter to congressional leaders, Gov. Janet Napolitano urged reauthorization of Medicare funding, due to expire when the fiscal year ends Sept. 30.

"Failure to offset these costs will result in additional tension in our health care safety net through overburdened emergency departments and additional costs passed on through the health care system," Napolitano wrote.

The money comes through the Medicare Modernization Act of 2003, which provided $1 billion over four years. One-third of that is divided among the six border states. Arizona hospitals and health care providers got about $45 million this year - second only to California.

Congress isn't likely to take action anytime soon, given the recent economic meltdown and the election just six weeks away. But the state has a $77 million unspent balance that can be tapped in the meantime.

"Anything having to do with immigration is viewed as a hot potato," said John Rivers, CEO of the Arizona Hospital and Health Care Association. "So there hasn't been a great amount of political will to get this thing done."

Federal law requires emergency treatment for anyone who needs it. Uninsured and undocumented patients last year cost Arizona hospitals $317 million in uncompensated care.

Sen. Jon Kyl, R-Ariz., helped push the funding through Congress, but hospitals were initially slow to apply for the money, which covers emergency services and a "stabilization period" of two days.

Banner Health hospitals in Arizona incurred nearly $100 million in uncompensated care during 2006-07, and got roughly $6 million that same year to help cover care of illegal immigrants.

If the funding isn't reauthorized, Banner spokesman Bill Byron said the care won't change.

"We're still going to treat patients, but we'll have to absorb the costs," Byron said.