About 20 private Idaho hospitals are backing a bill that would require them to pay $25 million in each of the next two years to offset cuts in the state Medicaid budget.
A bill authorizing the assessments was approved unanimously by the House Health and Welfare Committee on Friday.
Administrators of Idaho’s Medicaid program are charged with finding more than $47 million in savings to meet fiscal year 2011 budget targets.
The $25 million assessment charged to private hospitals would help meet part of that goal. But the assessment would also help the hospitals protect their own financial health.
Idaho Hospital Association President Steve Millard says the annual contribution keeps hospitals eligible for up to $125 million in federal Medicaid reimbursements. The federal government matches 80 cents for every 20 cents in state Medicaid reimbursements. (AP)
