Ga. Hospitals Offer Medicaid Tax Plan

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ATLANTA (AP) -- Georgia Hospital Association officials say the industry has agreed on a plan that calls for extending a hospital tax that provides a key chunk of state health care spending.

What to do about the so-called "bed tax," set to expire later this year, will be a key issue for state lawmakers in their upcoming session. The money is used as state matching funds to get federal money that increases Medicaid insurance payments to hospitals.

The hospital association says its plan would allow the tax, which is a tax on patient revenue, to continue.

A new, second tax on private hospitals would use the same system to get more federal funds. That money would support rebates for facilities losing money under the current tax because they don't treat many Medicaid patients.

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