House Sends Hospital Tax Extension for Medicaid to Governor

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Posted at 1:36 PM, Feb 10, 2017
and last updated 2017-02-10 13:36:00-05

ATLANTA (AP) - Georgia hospitals would continue paying a tax that helps draw down $600 million in federal support for the Medicaid budget, under a bill headed to Gov. Nathan Deal.

The Republican governor called the extension a priority heading into the legislative session. The tax, called a provider fee by the state, expires June 30.

The House approved the extension on Friday, 152 votes in favor to 14 against.

Lawmakers first approved the tax in 2010, taxing a percentage of hospitals' net patient revenue to draw millions more in federal support for treating low-income residents.

Hospital organizations have been among the largest supporters of renewing the program.

The tax is expected to yield more than $300 million from hospitals, totaling more than $900 million with the matching federal support.

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