Executive plan increases hospital assessment by $35 million
Arizona hospitals will pay more under Gov. Doug Ducey’s $10.1 billion spending plan.
The governor’s proposal, released last week, shows $79 million in “efficiency savings” or cuts to agency budgets for things like employee vacancies and lower utility bills.
But one item listed as an “efficiency savings” will actually increase the hospital assessment, which pays for Medicaid expansion, by $35 million.
That’s because the governor is proposing to move behavioral health services for childless adults to the same funding stream as acute care. Currently, tobacco taxes and the hospital assessment pay for acute care coverage for childless adults and those covered through Medicaid expansion.
Ducey will use that money to fund his spending priorities in education, as the majority of new spending in his budget, about $250 million, goes to schools.
The assessment will increase by 12 percent, generating $35 million, because of the policy change, according to the Governor’s Office of Strategic Planning and Budgeting.
Information from Rachel Leingang | Arizona Capitol Times
