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NC hospital assessment program sent to governor

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Legislators have agreed to a plan through which North Carolina hospitals will be taxed in exchange for receiving a windfall to treat Medicaid and uninsured patients.

The General Assembly gave final approval Wednesday to an assessment plan whereby $215 million annually will be levied upon hospitals. Most of the revenues will be used to draw down federal matching funds for Medicaid, resulting in $370 million more going to hospitals and $43 million to the state Department of Health and Human Services.

The North Carolina Hospital Association sought the assessments in part to narrow the gap for hospitals between the reimbursement rate they receive for treating Medicaid patients and actual costs.

The House voted Wednesday to send the bill to Gov. Beverly Perdue, whose budget proposal contained a similar program.

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