NH News
4:29 pm
Thu May 15, 2014

Senate Adopts Plan To Address Medicaid Enhancement Tax Ruling

The state Senate approved its version of a fix for the state’s Medicaid Enhancement Tax today, a day after House lawmakers passed their own proposal.

The two sides will now meet in a committee of conference to hash out their differences.

The Senate plan phases out the tax over time.

The House’s proposal makes clear that the revenue be used for healthcare programs, while also expanding the tax to cover more providers and lowering the rate.  

Senate President Chuck Morse says the tax cannot be eliminated overnight, but says passing a plan is an important first step.

“This will certainly require touch decisions by the budget writers in the next legislative session, but is a manageable loss of revenue. It is important that we as legislators be proactive in addressing this complex and difficult issue rather than reactive to future Supreme Court rulings.”

The tax has been ruled unconstitutional by two Superior Court judges, an issue that’s now before the state Supreme Court.

There’s roughly $175 million in the current state budget that relies on the tax.