NH News
8:30 am
Mon June 2, 2014

House, Senate To Consider Medicaid Enhancement Tax Deal

Credit NHPR Staff

Lawmakers in the House and Senate this week will consider a deal between the state and hospitals on the Medicaid Enhancement Tax.

The deal, largely brokered by Governor Maggie Hassan, pulls 25 of the state’s 26 hospitals out of a lawsuit.

Two Superior Court judges had ruled the tax in its current form unconstitutional, and a ruling is pending before the state Supreme Court.

As NHPR’s Josh Rogers reports, the deal isn’t being seeing a positive step by all.

“Some Republicans think it’s too favorable to the hospitals and puts the state into a hole going forward. I would expect this issue to come up on the campaign trail, but also expect it to pass on Wednesday.”

The deal means hospitals will get more money for care they provide for free or reduced rates, so-called uncompensated care, but the state’s total outlay would be capped.

The state’s general fund will ultimately take a hit of roughly $180 million over the next two budget cycles.

Even if the deal goes through, St. Joseph Hospital in Nashua, the lone holdout, plans to continue its legal challenge to the tax.