Arizona hospitals are floating a financing proposal to stop expected enrollment cuts to the state's Medicaid program.
Ariz. hospitals move to skirt Medicaid cuts
The Arizona Hospital and Healthcare Association, representing 104 member hospitals, is backing a $300 million one-year hospital assessment based on inpatient days. Under the plan, Arizona would use the $300 million assessment to draw down Medicaid matching dollars at a 2-to-1 rate.
Arizona Gov. Jan Brewer’s proposed budget calls for cutting 280,000 people from Medicaid rolls, at an expected savings of $541.5 million. The hospital association says that $200 million raised through the assessment would be used to preserve Medicaid eligibility. The other $100 million would provide a financing stream for hospitals to mitigate cost-shifting pressure so the assessment isn’t passed onto payers and patients.
The proposal also includes a pledge by providers, the Medicaid program and private payers to collaborate on payment and care-delivery innovations to lower healthcare costs. Hospital association officials are meeting with state lawmakers about the proposal, according to a spokeswoman for the association.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.