Hospital 'Tax' Supported from Left to Right, Except WMC

When I first came to Wisconsin as a student in 1962, I heard the constant chatter about how our state ranked last in receiving federal dollars relative to all of the money we sent to Washington.

Wisconsin lacked in defense industries, military bases, and space centers. To make matters worse we did not lead the nation in significant populations living in poverty or that were elderly. Consequently, we could not maximize dollars spent on poverty, entitlement, or block grant programs.

I am not a big fan of taxing any form of heath care. But the proposed gross receipts tax on Wisconsin hospitals of .8 percent makes sense. Unfortunately.

But that is not five percent, or one percent, but 4/5's of a percent.

As The Capital Times noted in its March 1, 2008 editorial, Hospital tax pays for itself

The tax would have brought in about $400 million from the hospitals, but the hospitals would have received that $400 million and more in matching federal money to help pay for Medicaid programs.

That is because the federal government will match much of the revenues. By not imposing the tax, we leave hundreds of millions of federal money on the table - in Washington D.C.

Madison's progressive newspaper is not the only one supporting the tax. The not quite so liberal, Appleton Post Crescent, says Hospital tax needed to ease budget crunch

It (the hospital tax) may even end up reducing costs for those with private insurance, too, since hospitals have said they make up for the poor Medicaid reimbursements by charging the insured more. With better reimbursement, they wouldn't have to.

The hospital tax is favored by hospitals and will bring in more money. The state can't afford to let the hundreds of millions of dollars slip away a second time.

Keep in mind that the projected Wisconsin budget deficit is $650 million. While these federal monies could not be used to fill the budget deficit, it demonstrates the magnitude of the matter.

Not surprisingly,  if two opponents changed their minds, resolution would be forthcoming. The first is the Republican leadership in the Wisconsin Assembly, the second is their puppetmasters, Wisconsin Manufacturers and Commerce (WMC).

Here are the health career providers who sit on the WMC board of directors who are trapped between the best interests of their companies and the powerful business lobby:

• Marshfield Clinic
• Aspirus Wausau Hospital
• Gundersen Lutheran
• Humana Inc.

Comments

[Jo Egelhoff]

Except WMC and Senator Ellis, who makes an important argument... http://www.postcrescent.com/apps/pbcs.dll/article?AID=/20080302/APC06/803020551/1036

[Paul]

Jo, I am sorry but that argument makes no sense to me, and I often find myself in agreement with Senator Ellis.

It is beyond belief that if Wisconsin received the $450 million in matching funds from the federal government, the payments would dent the federal treasury.

This is our money; there are conditions to receiving the funds. Those conditions are not unreasonable. After all, we raised the drinking age to 21 so we could qualify for federal transportation money.