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University of Arizona Professor Dr. Daniel Derksen on the hospital-provider tax proposed by Gov. Jan Brewer to pay for Medicaid expansion.
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-- we starts with the first state to announce plans and how exactly it hopes to paper obamacare.
-- Republican Arizona governor Jan Brewer says a new tax increase in her state.
Is the answer the governor is proposing a new hospital provider tax and this is on top of all the taxes.
We were just hit three weeks ago but a number of experts from hospitals.
Are on board with the governors do new tax hike -- with me now is one of them.
Doctor Daniel -- news from the University of Arizona public health policy and management -- -- Welcome to the -- see you think this is a good idea.
Well good -- anomalous I think that's -- for Arizona.
This is a very novel and innovative approach to solving particularly difficult -- -- and getting.
That 20% of arizonans who don't have health insurance -- coverage this'll get this part way there through Medicaid expansion.
So they're talking about media 6% tax the exact number as I understand the governor's office is not laid out they look to cover the gap that's left.
Between what the feds would be providing -- what it's gonna cost them.
-- have all of the money a little bits of you slap let's call it a 6% tax but whatever it is you slap a tax on hospitals.
As they provide this service how do you see that playing out because to me it seems like they just pass that aren't their consumers.
Well that this is something in that test states have been doing for some time as far as levying a provider tax to help.
Pay the State's share.
The Medicaid.
Costs.
And 49 states currently do.
Levy attacks for providers and providers mean -- not -- hospitals but also -- Your expression that the provider would would take that out of their profits that 6% of their being charged or would they slap that on top of what they're charging you wouldn't be an end -- health insurance company.
Why don't think it's quite that simple just an add on costs that they would pass on to the consumers.
The choice here is really.
Do you continue with staggering uncompensated care costs for the uninsured.
Or do you get to some payments have for those services as a hospital -- Just why you want to -- -- I'm just wondering where the money's coming from.
I am I completely get that they -- to -- keep paid for the service that they're providing but I'm just wondering where do you think that money is coming from.
-- -- -- In this case it would be the hospitals that would pay.
A portion of this through attacks whether that's 4% or 6% -- yet to be determined.
But that would cover the State's share.
What it would cost to draw down the federal -- When they have to take that money do you think that it comes in the form you know they now they got this 6% more they have to pay.
Would they take that from their profits or would they charge -- of the people who are coming in for the services in order to cover that 6% of their pain.
I I don't think the consumers will see an increase in what they're paying for.
And I think it's important in the case of airs on understand that there's already a provider hospital tax.
In the State's largest city Phoenix which has the largest concentration of hospitals there there there are already doing this provider tax so wouldn't via a new burden -- -- now.
The other option -- easier saying it will come out of their profits that -- -- if they're not passing it onto the consumer than the only other place that you don't have to fire workers to cut their costs.
Or.
You know -- they would have did I mean I -- -- they have a 6% profit margin I don't think it's quite that high don't think their shareholders would be happy about it so where do you think they get that money spent pet.
Well I I think yet to take a step back and and look at what happened one the state -- Medicaid enrollments and and about a 125 to 150000.
Arizonans became uninsured.
The hospital share of that uncompensated costs -- Casas -- accrued because of that decrease in Medicaid coverage.
Increase our -- take care costs of that 80%.
So when you get people covered those uncompensated care costs go down cycle that's -- I think first Israel's -- -- we're just having trouble getting -- where that money would come from but we're out of time doctor Dirksen thanks so much for coming on.
