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SALT LAKE CITY (AP) — A Utah doctors' group has come out against a proposal from state officials to tax physicians and others to defray the cost of expanding Medicaid.
Utah Medical Association CEO Michelle McOmber said physicians get paid less when they see patients covered by Medicaid and doctors shouldn't be required to help pay the $78 million annual cost of growing the government program.
"We are talking about taxing individuals who are providing a service for a state program. We don't believe that is the way to fund this," McOmber said.
The yet-to-be unveiled plan from Gov. Gary Herbert, Lt. Gov. Spencer Cox and top GOP legislators follows three years of debate by lawmakers about whether to expand Medicaid as offered under President Barack Obama's 2010 health care law.
If states open the program to those earning up to 138 percent of the federal poverty level, the federal government has offered to pick up most of the cost.
In Utah, that's estimated to be about 126,000 people, but conservative lawmakers have rejected the offer thus far over fears that even more people will enroll or that the debt-plagued federal government may not keep its promise to pay the cost.
Herbert, a Republican, and GOP legislative leaders hope their plan will win support from Utah's Republican-dominated Legislature by asking doctors, hospitals and other stakeholders they say would benefit from the program to cover it through taxes and fees.
Taylorsville Rep. Jim Dunnigan, one of six Republican officials crafting the plan in closed-door talks, said Utah would only pick up about one-third of the $78 million price tag.
Utah Hospital Association president Greg Bell said in July that hospitals that would benefit from the plan — because they'd get stuck with fewer unpaid bills — are willing to help pay about $25 million, if other groups chip in too.
But McOmber said doctors are not reimbursed for the full cost of seeing Medicaid patients right now, so it would be an additional hit if an expanded Medicaid program meant doctors had to pay higher licensing fees.
A preliminary proposal from legislative leaders would increase licensing fees paid every other year from $261 to $5,061, but McOmber that was floated early on and no new number has come up in the talks.
The Utah Medical Association is still working with legislators on the issue, but McOmber hasn't ruled out the possibility that her group could file a lawsuit if the plan is approved.
Dunnigan said the group of six Republican officials is still working on specifics but it has been suggested that Medicaid reimbursement rates be raised in return for hiking licensing fees. Instead of getting 50 cents on the dollar for a Medicaid patient, doctors would be reimbursed dollar-for-dollar, he said.
Dunnigan said they're still listening to concerns from doctors but if the Legislature and Herbert ultimately think the plan should become law, they can pass it without buy-in from doctors and others groups.
A full proposal won't be unveiled for at least several weeks.
Herbert has said he hopes to call a special session in September or October for lawmakers to consider the plan.
There is no deadline for approval but Utah will continue to miss out on federal money as long as it does not expand Medicaid.
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