Georgia House takes first step to extend hospital tax

ATLANTA (AP) – House members are acting quickly to extend a tax on hospitals that allows Georgia to draw $600 million in federal support for the Medicaid budget.

The House Appropriations Health subcommittee approved an extension through 2020 on Tuesday. The bill passed the Senate on Thursday and now goes to the House Appropriations committee.

Gov. Nathan Deal and other top Republicans have called the extension a priority for the session.

Lawmakers first approved the system in 2010, taxing a percentage of hospitals’ net patient revenue to allow the state to draw millions more in federal support for treating low-income residents. But it’s due to expire in June.

The tax is expected to yield more than $300 million from hospitals, totaling $900 million with the federal support. Hospital organizations support the extension.

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