WisPolitics Budget Blog

Before announcing his vetoes, Gov. Jim Doyle took time to make it clear that he will pursue the hospital assessment in the next budget.

He said Republican opponents of the plan are "boxed in by their own rhetoric," and that the assessment "would have helped tremendously" to plug the budget deficit.

He chided those who call the plan a "hospital tax," saying that the method is used by many other states to capture more federal dollars for the reimbursement of hospitals who treat medical assistance patients. The federal government sets up the parameters of the program as "economic incentives" that "reward" states with more funding.

"I am committed to getting this plan in the next state budget," he said.

Labels: Doyle, Hospital_Assessment

The Wisconsin Hospital Association today launched a statewide radio campaign highlighting a proposal to assess hospitals and capture more federal funding for Medicaid reimbursement.

"Wisconsin is not getting back its fair share of federal tax dollars, and our health care costs are rising because of it," a female narrator says.

The spot says that the assessment proposal could return an additional $410 million in federal funds, and that the plan has wide support from a bipartisan group of legislators, business groups, and the governor.

"But some politicians in Madison are standing in the way," says the narrator.

The ad will run for at least a week, according to WHA senior vice president Eric Borgerding.

The assessment has support from Dem Gov. Jim Doyle and the Democrats who control the state Senate, but is opposed by the Republicans majority in the Assembly. Speculation from budget watchers as the negotiations on a compromise have dragged on is that the assessment will not be part of the final package.

Borgerding called the hospital assessment a "win-win" for the state, and he said the WHA will advocate for the assessment over the long haul if necessary.

"If unfortunately it's not included in the budget repair, there's a biennial budget bill right around the corner and we are committed to talking about Medicaid reform on a statewide level," he said.

Listen to the ad here.

See the WHA press release here.

Labels: Budget_Repair_Bill, Hospital_Assessment

Wisconsin Manufacturers & Commerce, the state's largest business lobby, has lent its support to the 0.7 percent assessment on state hospital revenues.

"Current underfunding of Medicaid is driving up health care costs for employers," WMC vice president of government relations James A. Buchen said today in a statement. "Hospitals have not seen Medicaid reimbursement increases in 13 years and that has led to a hidden health care tax on employers as costs get shifted to private health care payers."

WMC originally opposed the assessment when Gov. Jim Doyle first proposed it as part of his 2007-09 budget package last year. The assessment is supported by Democrats in the Legislature, but was removed in final negotiations as the budget was approved in October.

Doyle also included the assessment in his budget repair bill introduced last week. He says it will bring $450 million in federal revenues back to the state over the biennium. Most of the federal cash will go toward raising reimbursement rates for hospitals that treat Medicaid patients, but $125 million could be used to help balance the state's general fund, Doyle said.

Republicans have called the proposal a tax that will hike the cost of health care for everyone. The assessment was removed in the budget repair bill passed by the Republican-controlled Assembly Wednesday.

WMC is the second large conservative-leaning organization to back the hospital assessment this week. The Metropolitan Milwaukee Association of Commerce voiced its support for the plan on Wednesday. See the MMAC statement here.

Labels: Budget_Repair_Bill, Hospital_Assessment

The Wisconsin Hospital Association yesterday sent a letter to the Joint Finance Committee co-chairs, Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson, urging legislators to exercise caution with the proposal to impose a .8 percent gross receipts tax on hospitals to help the state capture more Medicaid funding.

"The latest version of the plan appears to be a more thoroughly researched and crafted proposal," than the original plan in the budget bill, writes WHA president Stan Brenton.

"Given the potential impact the hospital tax could have on health care costs and Wisconsin’s track record with existing provider taxes and (thought to be) segregated funds, WHA remains opposed to the hospital tax," says Brenton.

See the letter here.

Labels: Hospital_Assessment

In a letter to the co-chairs of the Joint Finance Committee, DOA Secretary Mike Morgan says the hospital assessment proposal is being adjusted from 1 percent of total revenues to .8 percent. The assessment is expected to generate $600 million in federal matching funds for Medicaid.

See the letter here.

Labels: Hospital_Assessment