Mississippi Judge Rules Against Gov. Barbour's Hospital Tax Intended To Fill Medicaid Budget Gaps

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Public Health;  Litigation / Medical Malpractice
Article Date: 15 Jul 2008 - 10:00 PST

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Hinds County, Miss., Chancery Court Judge William Singletary recently ruled against a hospital tax proposed by Gov. Haley Barbour (R), saying that only the state Legislature has the authority to set taxes or fees paid by hospitals, the Memphis Commercial Appeal reports. The tax, intended to cover a $90 million gap in the state Medicaid budget, was originally proposed in 2006. It would have applied to hospitals' general revenues.

Barbour had rejected criticism that the tax would hurt hospitals and noted that other options proposed by the Legislature do not offer permanent fixes to the state's budget problems.

Barbour said that as a result of Singletary's decision, he would cut Medicaid spending by $34 million per month in order to balance the state's budget. The cuts, which would take effect Aug. 6, would decrease funding for physicians, dentists, home health agencies and hospitals. He said, "I'm going to do it, even though it's a terrible thing," adding, "I hope that the Legislature will come back in August and that the House will come forward with a permanent, fair and sustainable solution." The Legislature, whose session begins Aug. 4, could stop the cuts by raising taxes. In the past several months they have been "deadlocked" on how to address the Medicaid funding gap, the Commercial Appeal reports (Connolly, Memphis Commercial Appeal, 7/11).

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