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January 16, 2016 09:54 AM UTC

Questions about the hospital provider fee? Read this

  • 2 Comments
  • by: Jason Salzman

(Promoted by Colorado Pols)

Reporters have struggled to find a short-hand description for the “hospital provider fee,” because  it’s impossible to describe briefly. And lengthy descriptions of it often require multiple readings. And that’s without trying to understand the intracacies of why it’s such a big deal.

So the Colorado Independent did us all a favor by dedicating a full article to: “What you need to know about Colorado’s biggest political battle. It’s called the hospital provider fee, and it’s complicated. Let’s break it down.”

You should take a few minutes to read the entire piece, by the Independent’s Corey Hutchins, but here are a few paragraphs:

The hospital provider fee is a state program requiring hospitals to pay money each year depending on how many patients stayed in hospital beds overnight and how much outpatient services they provided. That money is then used, among other things, to help Coloradans who can’t afford insurance plans get care, and to help the state pay for people who are on Medicaid, which is a government healthcare program for low-income Coloradans and their families.

Each hospital pays a different amount — some pay a lot, some pay nothing — and the fee hauled in nearly $700 million last year. This money is then matched almost dollar for dollar by the federal government to expand Medicaid, provide health coverage for Coloradans who are using emergency rooms for non-emergency treatment, and reimburse hospitals for care. The more money the fee brings in the more money the feds give Colorado to make sure people who can’t afford healthcare get it. Since 2009, the program has helped more than 300,000 people get insurance coverage….

Democratic Sen. Pat Steadman, who sits on the state’s budget committee, explains it like this: Picture a bucket with water pouring in. The incoming water is state revenues, and when the bucket fills to the top (or hits its TABOR limits) water starts pouring over the edge— and that overflowing water (money) goes back to taxpayers in the form of rebates. Now, picture rocks in the bottom of the bucket. One of those big rocks is money from the hospital provider fee. It’s money that takes up space in the bucket, and those who want to take a big rock out can do so by reclassifying the hospital provider fee into an enterprise…

The context of AFP’s [Americans for Prosperity, which opposes the measure] involvement is that it’s a big-time, strategic pressure group with loads of resources and activists that will keep certain lawmakers holding the line on this issue, especially at a time when they need backing to run for re-election.

Meanwhile, the business lobby in Colorado is speaking in a near-monolithic voice for reclassifying the hospital provider fee into an enterprise, as have editorial boards at some of the state’s regional newspapers.

Comments

2 thoughts on “Questions about the hospital provider fee? Read this

  1. Thanks, Jason. This does help in understanding what the fuss over the hospital provider fee is all about. Until TABOR is repealed or found unconstitutional, we are stuck with these workarounds.

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