A recent ruling declaring a state tax on hospitals unconstitutional is leaving lawmakers scrambling for a fix. On Tuesday, three amendments were put forward, each offering a different path.
Representatives Cindy Rosenwald (D-Nashua) and Neal Kurk (R-Weare) are co-sponsoring a plan that changes technical language within the Medicaid Enhancement Tax and designates that none of the revenue be allocated to the state's general fund.
“We need to rethink the nature of the MET, the purpose and the partnership,” said Rosenwald.
The ten New Hampshire hospitals suing the state over Medicaid reimbursement rates do have a legal basis for their lawsuit. That’s according to an order issued today by a federal judge.
The hospitals argue that the State’s slashing of more than $250 million in Medicaid funding in the last budget violates Federal guidelines. Those guidelines are meant to ensure adequate quality and access to health care for Medicaid recipients.
Attorneys for the state and for ten N.H. hospitals are in federal court this week. The hospitals are suing the state over major cuts in Medicaid they say are impacting medical services for low income patients.
Ten of the state’s largest hospitals say that $130 million in state Medicaid cuts is not only forcing hospitals to cut services to the poor, but they are also illegal. Gordon Macdonald is the hospital’s attorney.