The hospital provider fee needed to raise $900 million for state public health programs appears to be sailing quickly through the General Assembly.
Senate Bill 70 to continue collecting the fee through at least 2020 was backed by the Senate earlier this month and won approval from the House budget committee Wednesday. It could go before the full House on Friday.
If given final approval, as expected, it will head to Gov. Nathan Deal for his signature.
The tax assesses hospitals $311 million a year and the money is used as matching funds so the federal government chips in another $600 million for Medicaid, the public health care program for the poor and disabled.
The “bed tax” or “provider fee” was first instituted in 2010 as a way of attracting extra federal funding. Currently the federal government foots about two-thirds of the cost of Medicaid.
Without the bed fee the program would have a $900 million shortfall.
About the Author
