Medicaid Makes it Into Special Session

The Mississippi State Capitol in Jackson

Day three of the legislative special session has produced a new legislative bill that requires hospitals to pay 60 million dollars in annual taxes. MPB's Lawayne Childrey reports.

Governor Haley Barbour says while the bill is not perfect it does require hospitals to quote, "pay their fair share" and protect taxpayers from a runaway Medicaid deficit.

“There are a lot of dogs and cats in this bill many of which I wouldn’t have done in normal policy. But just because I didn’t agree with them doesn’t mean that they’re bad. And so we accepted several technical items. But the two big things, are done.”

The bill has the endorsement of the Mississippi Hospital Association, But MHA President Sam Cameron says it comes with a warning.

“The small rural hospitals are probably more vulnerable to this tax than your larger hospitals are. We do anticipate and in fact there already have been reductions in staff and services in some areas of our state by hospitals. Not only because of the current economic situation that we find ourselves but also on the anticipation of this tax going into effect.”

This is perhaps the first time lawmakers have come this close to not having a balanced budget at the beginning of a fiscal year. Representative Harvey Moss of Corinth.

“We had a lot of issues to deal with and we’re trying to start the fiscal year with some money in the bank, where people can be paid and contracts and roads and mental health. There so many things you know that people depend on that the state provides.”

Health advocates have worried that Medicaid would stop serving the poor and needy if the special session didn't resolve the budget issues. For MPB News, I'm Lawayne Childrey.