Massachusetts hospitals would pay a new $250 million annual tax to help fund the state's Medicaid program under a budget proposed by Massachusetts House leaders Wednesday, according to the Boston Globe.
As proposed, the tax would be phased out after about five years. Tax revenue would be redistributed among hospitals, and those with higher shares of Medicaid patients would gain more funds than those with fewer Medicaid patients, according to the report.
Administration officials said the new revenue will help MassHealth, the state's Medicaid program, transition into an accountable care organization model of care, according to the report.
Under the proposed budget, the tax would begin Oct. 1, 2016, and end July 1, 2022.
The House and Senate still must debate and approve the budget before it can be sent to the governor to sign, according to the report.
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