Doyle re-introduces hospital tax
MADISON — Democratic Gov. Jim Doyle's administration Wednesday announced its new plan to tax the revenues of most Wisconsin hospitals to bring in about $300 million more in federal aid.
That cash would be used to increase reimbursement rates for hospitals who treat Medicaid patients and help fix the state budget deficit.
"It's the first time in roughly 10 years we've had an adjustment (in Medicaid reimbursement)," Mercy Health System Vice President Rich Gruber said.
Mercy officials will wait to see the plan's details in Doyle's budget before deciding if they support the plan. However, Gruber said the additional $5 million Mercy would receive would help close the increasing gap between costs and Medicaid reimbursements.
The state Department of Health Services asked that the Legislature act quickly to approve the hospital assessment, which Republican legislators blocked the past two years. Democrats now control the Legislature and are laying the groundwork to act on that plan and other changes to raise revenue. At the same time, the state is preparing to spend its share of the federal stimulus package.
Under the plan announced Wednesday, a 1.4 percent tax would be levied on patient revenues at 72 hospitals. Of those 72 hospitals, 59 would end up getting more state aid for treating Medicaid patients.
For example, state officials said, Mercy Health System would get about $5 million more than it would pay under the assessment in the first year of the program; Beloit Memorial Hospital, $5.3 million more, and Edgerton Hospital & Health Services would see no assessment impact.
Hospitals that serve few Medicaid patients would be losers under the assessment.
In Mercy's 2007-08 fiscal year, it spent $34.4 million on Medicaid services, but it was reimbursed only $19.7 million, Gruber said.
"You can see there's a big gap between the actual cost of the service and what we're reimbursed," he said.
However, with the reimbursement increase comes more patients through new eligibility requirements, he said. "The devil is always in the details," he said, as far as how the gap would end up.
The Wisconsin Hospital Association, which opposed the first version of the proposed hospital assessment in 2007 before supporting a later version, on Wednesday applauded Doyle's introduction of the latest proposal and said it would work with the Legislature to pass it.
Hospitals are now paid less than half what it costs to care for Medicaid patients—to the tune of $600 million annually.
"The hospital assessment and the matching federal dollars will result in higher payments that will reduce that burden," Wisconsin Hospital Association President Steve Brenton said in a statement.
Jan 16, 2009 at 2:12 p.m.
Suggest removal
Hospitals do everything they can to cut back on the care they give to medicaid patients. They know they don't get reimbursed enough so they don't offer tests, procedures, or certain doctors won't see them. This is just another way for the health systems to get extra money in their pockets and still give the same crappy care.
Jan 16, 2009 at 8:59 a.m.
Suggest removal
If the glorified hospitals would lower their costs this would not be an issue Raise the taxes and then give the over rated hospitals millions back only in America... The remodeling and face lifts at certain hospitals is very costly and then then little man is paying higher insurance premiums to cover the renovations then the government comes in and nails us again and again and again!!!!!!!!!!!! When I need medical services how the place looks is not why I choose to go there I go where the care I get is acceptable and and serves my illness with the best care!!!!
Jan 16, 2009 at 8:58 a.m.
Suggest removal
minan:
i don't smoke.
it's a regressive tax, meaning it burdens the poor more than those with the ability to pay.
do you drink?
mark my words, you'll see a beer tax this year too (the current beer tax is 6.5 cents per gallon and nets the state about $50 million).
it will double if not triple this year.
Jan 16, 2009 at 8:18 a.m.
Suggest removal
A Democrat raising taxes... in other breaking news, water is wet.
Jan 16, 2009 at 8:03 a.m.
Suggest removal
I pray to God somebody beats Doyle out the next go around. He is a moron.
Jan 16, 2009 at 6:45 a.m.
Suggest removal
Hold on to you're wallets, (what's left of it) it's only going to get worse!
Jan 16, 2009 at 6:44 a.m.
Suggest removal
New money saving idea: Every time Jim shows his face in front of a camera the citizens of Wisconsin should impose the Jim Doyle Ego Tax. He and his administration should contribue $10,000 to the state. That way, it'll take about a week to make up the difference and in two weeks we'd all be living in sunshine.
Jan 16, 2009 at 1:41 a.m.
Suggest removal
BTW; the cigarette tax has made many in organized crime rich. If they increase that tax again (which they will), you'll see an even bigger wave of under ground cigarette trafficking. The state will actually collect LESS in taxes as people go to all lengths to avoid the tax. Just as prohibition made many millionaires (notably the Kennedy's) so will this cigarette tax.
Your Government working for YOU!!
Jan 16, 2009 at 1:35 a.m.
Suggest removal
HAHAHA.
Like this is any surprise. The state of WI has balanced their budget on a giant pyramid scheme the past 4 years. Now that the mighty pyramid has COLLAPSED, and landed the state in over $6 BILLION in DEBT, they will now try every tax in the book to get out of the mess. GOD FORBID they would cut any spending. We all know governments do NOT cut spending; PERIOD!
.
You are going to see MASSIVE tax increases on everything you can imagine in this state. Those taxes will create a similar situation to what you currently see in Michigan, where taxes have drove businesses out of the state, and unemployment is at record highs (nearing double digits now).
.
Perhaps after the entire house of cards collapses; businesses leave the state in masses, unemployment sky rockets. Maybe then people will wake up and realize that government is the problem and never the solution.
Jan 15, 2009 at 6:44 p.m.
Suggest removal
Let me tell you
How it will be.
There's one for you,
Nineteen for me,
'Cause I'm the taxman.
Yeah, I'm the taxman.
Should five percent
Appear too small,
Be thankful I don't
Take it all.
'Cause I'm the taxman.
Yeah, I'm the taxman.
If you drive a car,
I'll tax the street.
If you drive to city,
I'll tax your seat.
If you get too cold,
I'll tax the heat.
If you take a walk,
I'll tax your feet.
Taxman!
Jan 15, 2009 at 6:25 p.m.
Suggest removal
In his 2003 State of the State address, our fair governor said, We should not, we must not, and I will not, raise taxes."
nice.
yet, this state has now voted this man in office twice. and he continues to break that promise.
this year he will reinstate the automatic gas tax increase.
he wants to tax hospitals.
taxes on hospitals, like all other taxes, get passed on to consumers.
for all you smokers out there, you're now a year into the $1.25 a pack increase he promised to not force upon you.
In a year-end interview, Doyle hinted at additional cigarette tax increases.
(BTW, Democrats who control Congress are expected to debate raising the federal tax - now at 39 cents per pack - in the upcoming session.)
please, either vote him out of office (next time) or quit complaining. the election is in november of 2010 -- for me, vote the bum out!
Jan 15, 2009 at 6:24 p.m.
Suggest removal
another good example of wisconsin government spending out of control. nothing left for a "rainy" day. a hospital tax. imagin that. now we get taxed when we get sick. bad health is enough stress without the tax. its crazy. its wisconsin.
Jan 15, 2009 at 4:06 p.m.
Suggest removal
Anybody that voted for this guy, has to have rocks in their head. Democrats love taxes. He's probably thinking of ways to get even more, right now!
Jan 15, 2009 at 2:10 p.m.
Suggest removal
There is more to this story than raising fees on patients.
Perhaps the real story is that Medicaid is problematic for care givers. But considering the United States has one foot in national bankruptcy, perhaps a "$600 Million" Medicaid deficit for hospitals should be considered a victory.
The ground level instinct of this reader/writer is of course, hey, let's tax sick people. There is a poetic tax beauty in the simplicity of it - the genius of it. Why didn't we think of it before?
We could segue the concept into other areas of life ripe to be tax plucked like: taxing dying pets; taxing orphans; taxing the few people left who actually have not defaulted on their lives; taxing people who have defaulted on their lives; taxing divorce; taxing living together; taxing married people; taxing gay people; taxing straight people; taxing soldiers, taxing homeless people; taxing old age; now that so many people have been beaten into not smoking we could tax anyone who does not, yes, anyone who does not now smoke; taxing picnics; taxing dead people; did I mention taxing non smokers; taxing.....
Bob Keith
cooldadiomedia.com
Jan 15, 2009 at 12:53 p.m.
Suggest removal
Hospital tax = billing increases for services rendered. Hospitals aren't in the game of losing money to get money. Hospitals will off set the burden of taxation by raising billing.
Jan 15, 2009 at 12:49 p.m.
Suggest removal
Every governor in the country is looking at new sources of revenue this year.
Jan 15, 2009 at 10:59 a.m.
Suggest removal
Jim Doyle introducing a new tax. Wow, next someone's going to tell me that the sun will rise tomorrow morning.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.