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Legislators reach agreement on NH hospital tax settlement
The agreement reached by House and Senate negotiators about an hour before Friday’s 4 p.m. deadline, incorporates a reduction in the MET tax rate sought by the Senate and shores up the state’s claim the tax is constitutional, which both the Senate and House advocated.
“This agreement is fair to the hospitals and to New Hampshire taxpayers, bringing stability to our budget while ensuring that our hospitals and the state can continue to provide critical health services to our people,” Hassan said. “I encourage the full Legislature to vote in favor of this important measure to protect our budget and the health and well-being of Granite Staters.”
“An agreement to move forward to resolve the outstanding matters related to the Medicaid Enhancement Tax and related litigation is welcome news for our patients and New Hampshire’s hospitals,” said NHHA president Steve Ahnen. “This agreement will require legislative enactment, but we look forward to working together to implement the provisions of today’s agreement to create a vibrant and sustainable Medicaid program for the patients and communities we serve.”
In 2011, state budget writers decided to keep about $250 million of tax revenue and use it for other purposes. Ten of the state’s largest hospitals sued in federal court over Medicaid reimbursement rates going back to 2008.
The agreement removes rehabilitation hospitals from the tax and hospitals agree not to seek refunds.
The House and Senate will vote on the agreement when they met Wednesday.
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