House Passes Budget Bill that Maintains Funding for Hospitals
June 26, 2014
The House passed its $29.1
billion budget bill—House Bill 2328—by a vote of 110–93. For the hospital community, the
legislation level-funds many priorities essential to maintaining patient access
to health care services and hospital jobs.
House Bill 2328:
- Replaces lost federal
Medical Assistance percentage (FMAP) funds
- Level-funds supplemental
payments for critical access hospitals, trauma centers, hospital-based
burn centers, and obstetrics and neonatal
intensive care units
- Appears to include
funding in the inpatient, outpatient, and managed care appropriation lines
that reflect the Department of Public Welfare’s annual spending update to
In addition, the House
supports using the Tobacco Settlement funds to fully fund health research and
uncompensated care for 2014–2015. The House also indicated that it will uphold the
existing hospital Quality Care Assessment contribution
to the state.
There are still important
steps to yet to happen in the budget passage process. The House, Senate, and
the Governor must all come to agreement on the final spending plan.
The Senate now will make its
changes to the House budget bill with its funding priorities, and also will
send to the House a revenue package.
The details of the revenue
package remain unclear, but several revenue options (including the cigarette
tax) remain on or near the table.
The timing on the budget’s
passage depends on the legislature and Governor reaching agreement about
various spending and revenue proposals, as well as other legislative
HAP is closely monitoring the
budget process to determine what advocacy efforts may be needed from HAP member
hospitals and health systems, and will keep members updated as additional
budget activity unfolds.