Hospitals press NH lawmakers to eliminate tax

Hospitals press New Hampshire lawmakers to eliminate Medicaid Enhancement Tax

Associated Press

CONCORD, N.H. (AP) -- New Hampshire hospitals are telling lawmakers to eliminate a tax on their revenue that they say is putting them at a competitive disadvantage and affecting the delivery of health care to patients.

Twenty-three hospitals signed a letter that was presented Monday to a commission considering whether the state should change how it taxes hospital. For many years, hospitals got their Medicaid Enhancement Tax money back in a refund, but that changed in 2011 when the federal government said the money must be distributed according to hospitals' Medicaid costs.

The hospitals say if the tax isn't eliminated, payments to reimburse them for the uncompensated care they provide must be maximized. And they said all the money should go to the state's Medicaid program, not the general fund.

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