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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 the legislature

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 priorities.

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.

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