Arizona Hospitals to Gain $108M Under Medicaid Expansion

Arizona hospitals can expect to gain $108 million in the first six months of 2014 due to the state expanding its Medicaid program, despite a new tax, according to a proposed hospital assessment rule from the Arizona Health Care Cost Containment System.

The rule from AHCCCS — which administers the state's Medicaid program — details a tax hospitals will pay to help fund the expansion. For the fiscal year ending June 30, 2014, the state expects to collect $75.3 million from hospitals. However, state officials anticipate paying more for hospital services than it collects from the new hospital assessment, resulting in an aggregate gain.

Beginning Jan. 1, 2014, Arizona will extend Medicaid coverage to people earning between 100 percent and 133 percent of the federal poverty level.

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