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Utah Senate extends hospital provider assessment to preserve federal matching funds
Summary
The Utah Senate voted to reauthorize a hospital provider assessment through 2019 to preserve access to federal matching funds; supporters said letting it lapse would shift costs to private insurance or the state general fund, while at least one lawmaker called it a choice between bad options.
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The Utah Senate voted to reauthorize the hospital provider assessment, extending the program’s sunset to 2019, the chamber announced during its floor session. Sponsors and supporters said the assessment allows hospitals to access federal matching dollars and that failing to extend it would lead to higher private insurance premiums or increased state general-fund costs.
A sponsor from the Health and Human Services Committee described the measure as a continuation of a program started after the recession and said the rate under the reauthorization would not increase. The sponsor told colleagues the hospital association supported the bill and emphasized the change was intended to preserve federal matching funds for Utah hospitals.
At a clarifying exchange, a senator asked what would happen if lawmakers did not renew the assessment. The sponsor replied that without the tax hospitals could not access federal money tied to the assessment and that those costs could be shifted to private insurers or absorbed by the state’s general fund, potentially raising premiums for consumers.
Several senators voiced support on those grounds, saying the assessment prevents cost-shifting to individuals and maintains federal dollars for Medicaid and other reimbursements. One senator described the choice as between “bad options” and said he would prefer the tax continue to avoid denying federal funds and shifting costs to others.
The chair announced the result: Senate Bill 32 received 24 "yay" votes.
The measure now proceeds according to the chamber’s legislative process. The Senate record shows continued debate about the trade-offs between state taxation and federal funding; no amended rate was reported during floor remarks.
