from Cecil Brown, Mississippi House of Representatives
Mississippi House of Representatives
Jackson, MS
On Monday the Mississippi Hospital Association sent their members a comparison of two plans to solve the Medicaid funding problem. In order to fill the $90 million shortfall, the Governor has proposed a combination of cuts in payments for services and increased taxes on hospitals. The House of Representatives has steadfastly supported increased tobacco taxes to solve the problem. The Association’s comparison clearly points out the flaws in the Governor’s plan and the benefits of the House plan.
More than 80% of the state’s hospitals fare better under the House plan than under the Governor’s plan. In addition, some of the hospitals that would gain under the Governor’s plan would receive extraordinary “windfalls” at the expense of the losers. For example, one 25 bed hospital would receive an additional nearly $6 million annually, a 36 bed hospital would receive a more than $10 million increase and a 35 bed facility would receive another $8 million per annum. Other hospitals would see dramatic cuts in their revenues as a result of the Governor’s plan. Clearly in his haste to push his tax on hospitals the Governor gave little thought to his plan’s impact on individual hospitals.
After reviewing the Association report, Dirk Dedeaux, Chairman of the House Medicaid Committee, said “The Governor has consistently opposed raising taxes on cigarettes to fund Medicaid and other healthcare needs, and now we see the result of his obstinacy. The House continues to support taxing those things that cause healthcare problems like tobacco and to oppose taxes on healthcare providers.”
Contact: Rep. Cecil Brown at 601-982-4123; Rep. Dirk Dedeaux at 228-216-3475.