Phoenix has received federal approval of its plan to tax local hospitals and use the resulting revenue to obtain a larger amount of federal dollars for health care provided under the state’s Medicaid program.
The Arizona Republic reports that city officials announced Wednesday the federal approval of the ordinance adopted last December by the City Council.
The ordinance will be imposed on 11 hospitals and is expected to generate about $130 million of revenue, producing about $200 million in federal matching funds to care for uninsured and underinsured patients.
Under the ordinance, hospitals cannot pass the tax along to patients.
Officials said the ordinance will allow 33,000 additional children to enroll in the Medicaid program, the Arizona Health Care Cost Containment System.
The issue of Medicaid expansion continues to loom large in state policymaking circles, and the Arizona Chamber of Commerce and Industry’s research arm, the Arizona Chamber Foundation, has produced new reports on this important topic.
The Foundation recently released a new Policy Brief titled The Business Case for AHCCCS Expansion. The brief outlines the impact of cost shifting and hidden health care taxes on Arizona businesses, along with the effect expansion of the Arizona Health Care Cost Containment System – AHCCCS – will have on the state economy and budget. It’s an excellent overview of the issue and the reasoning behind the growing support from governors throughout the United States, including Governor Brewer.
In addition, the Foundation has released a FAQ sheet to help individuals better understand what AHCCCS is and what voters passed into law when they adopted Proposition 204 in 2000. It’s an outstanding primer on the state’s best-in-class Medicaid program, the ballot measure that extended coverage to childless adults and the challenges facing the state posed by uncompensated health care.
I encourage you to dig into both of these publications and to share them with your network.
Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry. The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans.