The North Carolina Legislature socked it to retail customers, smokers, drinkers and big earners with higher taxes last year to help close a budget gap calculated by Democrats at more than $4 billion, The Associated Press reports. Could hospitals or doctors’ offices be next?
Legislative leaders are returning to Raleigh early to begin adjusting the second year of the state’s two-year budget and they’re intrigued by a hospital or provider tax or fee because it could draw down three times as much extra money in federal matching funds for Medicaid.
It’s one of several options they’ll examine to help close another budget gap starting July 1 that ranging from $700 million to $1.2 billion. Medicaid, the state-federal health care program for the poor, is on track to be $475 million over budget in North Carolina next fiscal year as more — and apparently sicker — patients enroll, legislative staff members told budget-writers last week.
“It’s worth considering,” said Senate Majority Leader Martin Nesbitt, D-Buncombe. “Medicaid is there to serve the people and we’ve gone past the point, in my opinion, of being able to serve people appropriately. We’ve cut to that point.”
Hospital and doctors’ lobbying groups in North Carolina oppose the idea, although they would receive higher Medicaid payment rates as part of any bargain.
