Georgia governor seeks hospital tax to balance Medicaid books

It's not news that state Medicaid programs are facing record shortfalls. However, if adopted, one governor's proposal for addressing his state's Medicaid deficit could provide some ominous foreshadowing for hospitals nationwide.

Georgia is projecting $608 million in Medicaid red ink for fiscal year 2011 beginning July 2010, and Gov. Sonny Perdue wants to tax hospitals and managed care insurers to bring in monies. Perdue proposes a 1.6 percent tax on hospital net patient revenue, as well as a premium revenue on managed care plans, in order to rake in some $345 million annually.

The Georgia legislature did not pass a similar proposal last year.

To learn more about Georgia's Medicaid deficit:
-  read this Atlanta-Journal Constitution article

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