Proposed Arizona Budget Scales Back Medicaid Cuts, But Doesn't Include Hospital Tax

Arizona Governor Jan Brewer revealed a new plan to trim the state's Arizona Health Care and Cost Containment System, which scales back her original plans to cut 280,000 enrollees from the program, but it fails to include an Arizona Hospital and Healthcare Association-advocated hospital provider tax, according to a KGUN report.

The new plan would cut 120,000 individuals by eliminating new enrollment of childless adults. It also cuts reimbursements to providers by 5 percent and increases co-pays for AHCCCS enrollees.

The Arizona Hospital and Healthcare Association criticized the plan saying it would create "devastating cuts to providers, and massive job losses across the state," according to the report.

The AzHHA had previously proposed a $465 million tax on healthcare providers in the state that would generate additional federal matching funds for the AHCCCS program, allowing fewer cuts to the program. The Governor's budget did not include this fee.

Read the KGUN report on the Arizona Health Care Cost Containment System.

Read more coverage on the Arizona Health Care Cost Containment System:

- Arizona Hospitals Ask Governor to Implement Provider Tax

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