Provider Groups Speak Out Against Norquist on Hospital Tax
Some of Georgia’s largest healthcare organizations say a state tax scheduled to expire in June should be extended, despite efforts by national anti-tax advocate Grover Norquist.
A coalition that includes Children’s Healthcare of Atlanta and Grady Memorial says the hospital tax prevents massive reimbursement rate reductions to Medicaid providers.
David Tatum, a vice president at Children’s Healthcare of Atlanta, says the state Medicaid program has enough problems as it is. He argues it’s not the time to be eliminating important revenue sources.
“There’s already a possible $400 million funding gap projected in the next fiscal year for the Medicaid budget in Georgia,” said Tatum. “If the provider fee were not to be extended, that could double it.”
Tatum and others in the coalition are speaking out after Norquist last week wrote a letter to Georgia policymakers, including the governor, urging them to let the tax expire.
Tatum says Norquist and his group, Americans for Tax Reform, should stay out of Georgia budget decisions.
“I believe a fellow based in Washington should not be trying to tell leadership in the state of Georgia what to do with the budget,” said Tatum.
Passed in 2010 to shore up the state Medicaid program, the tax assesses a fee based on each hospital’s net revenue. It generates about $200 million annually for the state, and helps draw down another $400 million each year in federal funds.
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