Hospital provider tax faces uncertain future

April 2, 2010

Like the House did a week earlier, the Senate voted April 1 to approve Gov. Perdue's proposal for a 1.45 percent "bed tax" increase on Georgia hospitals, a plan that would bring in approximately $169 million in new tax revenue in an effort to offset the state's Medicaid deficit. The Senate amended HB 307 to repeal the state's insurance premium tax sometime in the future when the state's reserve fund exceeds $500 million.

But the next day, House Speaker David Ralston announced he would rule the Senate amendment as non- germane, sending the issue back to the Senate and into an uncertain future.

"I am disappointed they amended the bill in a way to include a change that is likely unconstitutional and non-germane to the underlying bill," the Speaker said. "This is not a time to make last minute changes to major legislation by adopting proposals which have not had a thorough discussion."