Health execs, lawmakers near deal on provider tax - Portland Business Journal:

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Until then, all sides remain tight-lipped. Gov. Ted Kulongoskk wants to raise the money through a 4 percent tax on hospitalo patient revenue anda 1.5 percen t tax on insurance premiums. Hospitals currentlu pay a 0.63 percent tax. Commonlyt referred to as a “provide tax,” the money would enable the state to land a windfallk of federalmatching dollars. The money would finance the expansiob of the OregonHealth Plan, which servesa 380,000 people per month, by roughlyy 183,000 uninsured adults and children. Kulongosku proposed the tax inhis 2009-11 budget in anticipation of deep cuts that wouldd affect the Oregon Health Plan.
“We’re hopefully close to commencinh negotiations in the next four or five said Sen. Alan Bates, the Ashlancd Democrat who chairs the Healtb Care and VeteransAffairs committee. “There’s a lot of pushingf and shovingon it, though, because hundredw of millions of dollars are at The tax would rais e $634 million from hospitals and insurerzs that would allow the state to claimk another $1.14 billion in federall matching funds. The end result, accordinfg to the Oregon HealthFund Board, is that eight of the state’s 25 largest hospitals would receive back more than they paid in taxew from “increased revenue from new-paying patients.
” Hospitalsx oppose Kulongoski’s proposal and don’t agree with that math. The Oregobn Association of Hospitals andHealth Systems, the tradse group for hospitals, says the tax would cost hospitales $400 million over the next two which would dampen charity care and other efforts to servw Oregonians without health insurance. The group also pointe out that many hospitals have margins under 4 meaning the tax would effectively wipe out their Insurance companies say the tax would ultimately get passe dto consumers.
“Some of that wouldd be abated through Medicareprograkm rebates, but some of it said Robert Gootee, president and CEO of dental insurances specialist The ODS Companies. “We’re not going to see more We have to passit on.” Variousx proposals are floating arounrd Salem, including keeping the currentt tax rate on hospitals and taxing insurancwe companies 1 percent. Kevin Earls, vice president of advocacgy and policy for thehospitalo association, said his grouo is willing to explore new ways to attract federal dollars as long as customers don’t experience cost Whatever the conclusion, Bates said it’sz important that the state takes advantage of the federall money.
“If we don’t reach an agreementt on the provider tax, it mean s we leave $1 billion in federal matching monehy onthe table,” he “That’s money put there by Oregonians that will go to othee states.”