Arizona hospitals are floating a financing proposal to stop expected enrollment cuts to the state's Medicaid program. 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.
Late News: Arizona hospitals want $300 million assessment
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.
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