Louisiana Hospital Association Proposes Dedicating Part of Sales Tax to State Medicaid Program

Louisiana should renew 1% of its 4% sales tax on groceries and utilities and send the revenue to the state's Medicaid program, according to a plan released by the Louisiana Hospital Association, the Baton Rouge Advocate reports. The LHA estimates that the tax, set to expire in 2002, would bring the state about $110 million, which would be supported by a possible three-to-one federal match. The state's first use for that estimated $400 million should be "to raise payments for doctors and hospitals already providing care to Medicaid patients," LHA vice president of federal and state governmental affairs Sean Prados said. Next, the state should "expan[d] Medicaid to cover every person in the state living at or below the federal poverty line," Prados said, adding that that would increase the number of people insured by about 80,000. Prados said that increasing doctor and hospital reimbursements and covering more people under Medicaid would cost between $280 million and $300 million annually. Prados said that after doing that, the "remaining funds" could be used to "address the needs of the working poor" who earn up to 150% FPL, insuring them under a system that would require them to pay using a sliding scale. Prados said that even if tax revenue drops due to fluctuations in the economy and a possible increase in the number of working poor, "the numbers hold up well enough to make Medicaid a much better program and Louisiana a much healthier state" (Courreges, Baton Rouge Advocate, 11/14).