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Committee lays over bill moving hospital surcharge dollars into Health Care Access Fund
Summary
House File 2557 would redirect a 1.56% hospital surcharge from the general fund into the Health Care Access Fund, with authors saying the shift is budget‑neutral after an offset in medical assistance appropriations.
Representative Nadeau introduced House File 2557, which would redirect the current 1.56% hospital surcharge from the general fund into the Health Care Access Fund and adjust appropriations so the change is budget‑neutral. "I feel strongly that dollars collected from our health care providers and systems should go into providing services for the people we serve," Representative Nadeau said.
Fiscal staff addressed questions about interactions with other statutory triggers. Mr. Harney, a House fiscal staffer, said a contingent reduction mechanism applies to the provider tax but not to the surcharge; as amended by the authors' changes, the bill increases a base appropriation so the deposited surcharge dollars would be spent immediately, avoiding automatic reductions to the provider tax in current law. "In the bill before the amendment, yes [there would be a contingent reduction], but the amendment actually increases the base appropriation for medical assistance, so the money gets deposited in a health care access fund and is thus immediately spent," Harney said.
No outside testimony was offered. The committee laid over House File 2557 for possible inclusion in an omnibus bill.
