House gives final passage to hospital tax

A bill extending a controversial fee on hospitals that props up the state’s Medicaid program is on its way to Gov. Nathan Deal’s desk.

The state House voted 147-18 to give final passage to Senate Bill 24, which gives the state’s community health agency power to levy the fee, commonly called the “bed tax.” The fee helps the state fill a nearly $700 million hole in the Medicaid budget.

Not passing the bill, supporters said, would limit access to critical care for thousands of Georgians. Anti-tax activists see the fee as tantamount to a tax increase, but even lawmakers who loathe extending or creating taxes say ending the fee would deal a devastating blow to Georgia’s health care system.