Here are a few things that you need to know about the Medicaid Provider Fee:
- The Medicaid provider fee is not a tax. The fee is paid by individual hospitals in the state of Georgia, based on revenue. This is not a “bed tax,” which would be paid by individual patients. The best way to remember this is that it is not a tax you pay; it is a fee that we pay.
- Without this fee in place, the state would lose millions of dollars in federal money. These fees collected from hospitals are matched at a 2-to-1 rate by the federal government. In a typical year, the provider fee generates more than $200 million. With the matched funds, the state of Georgia receives about $400 million in additional funds to support the state Medicaid budget. Because it is expected to begin next fiscal year with a budget shortfall, Georgia’s Medicaid program could see a budget gap of more than $800 million without these matched funds.
- The majority of our patients rely on Medicaid. More than 185,000 patients treated at Children’s in 2011 were covered by Medicaid or PeachCare. This represents about 55 percent of total patients. As the largest Medicaid provider in the state, doctors and staff at Children’s treat about four out of every 10 pediatric Medicaid cases in Georgia.
- Medicaid funding affects everyone, including those not on Medicaid. Without Medicaid dollars, Children’s will have to reduce the scale of its current services. Additionally, we would be forced to decrease the amount of research that has, in the past, led to groundbreaking technologies and treatment plans.