Georgia’s hospital provider fee targeted by anti-tax groups

The hospital provider fee—also known as the “bed tax”—is used in 49 states to help pay the state’s share of Medicaid funding. Anti-tax groups, however, are targeting Georgia’s 1.45 percent tax on hospital profits, which some see as a beginning of a national campaign to roll back that charge.

STAT News reports American for Tax Reform (ATR), a group known in political circles for asking candidates to sign a pledge not to raise taxes, is leading the Georgia effort. Its argument is the tax amounts to “gaming the Medicaid system” by using hospital profits to get additional federal funding.

“States across the country should reject the notion that bigger government, more spending, and higher taxes are the only solution to any state’s policy priorities,” said ATR state affairs manager Paul Blair.

The tax has some high-profile supporters, including the Georgia Hospital Association, and was extended in 2013 over ATR’s objection.

For more on why this tax on hospitals became so widely used during the Great Recession, click on the link below: 

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John Gregory, Senior Writer

John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.

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