Kansas Gov. Kathleen Sebelius is expected to approve a tax on hospital revenue as soon as this week in order to increase federal payments to the state Medicaid program. The tax is subject to CMS approval. At least 16 other states have passed similar assessments. The 1.83% tax on net inpatient revenue is expected to raise $35 million in its first year. That will draw an additional $52 million in federal matching funds, for a total increase of $87 million in Kansas' Medicaid funding. The Kansas Hospital Association approved the tax -- 80% of which would be used to raise Medicaid reimbursement for hospitals while 20% would go to physician payments. About 80 hospitals are expected to pay the tax. The state's 72 critical-access hospitals are exempt. -- by Mary Chris Jaklevic
Kan. likely to OK hospital tax to fund Medicaid
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