Medicaid battle ends in compromise

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July 1, 2009

Anonymous The Meridian Star Wed Jul 01, 2009, 11:31 PM CDT

from staff reports

The Medicaid compromise bill that cleared both houses of the Mississippi Legislature late Tuesday was truly that — common ground that required concession from both sides of the issue, local officials said.

The governor controls the agenda of any special session, and he waited until Tuesday of the three-day session to let lawmakers consider Medicaid. He did so only after the Mississippi Hospital Association conceded in a hard-knuckled political fight over the governor’s plan to tax hospitals to help fund Medicaid.

The hospital tax starts at $60 million a year and gradually increases to $90 million over the next couple of years, as federal stimulus money disappears.

Wallace Strickland, president and chief executive officer of Rush Health Systems, said he was pleased the Legislature passed a compromise before midnight, thus keeping the program alive.

"We like the certainty of knowing now that we still have Medicaid," he said. "We hate that the tax is put on hospitals, but at the same time we understand and accept that ... it's about as fair of a compromise as we could have asked for given the situation. I'm not jumping for joy but I'm not crying either. There was lots of give and take."

Strickland said his staff is still trying to sort through the numbers to see how the new funding plan will affect their hospital. He doesn't, however, foresee any major obstacles.

State Sen. Videt Carmichael, R-Meridian, said the bill was a true compromise.

"It was the agreement by all parties involved," Carmichael said. "Now, not everybody is going to be happy but that's what compromise means — each side has to give a little. The bottom line: the state needs to put to rest the Medicaid issue. Maybe this is the beginning of that."

State Rep. Greg Snowden, R-Meridian, agreed.

"I think it's a fair meeting in the middle," Snowden said. "It was important to me that the governor, lieutenant governor, the speaker (of the House) and MHA supported the bill. But the primary factor for me was the local hospitals, Rush, Riley and Anderson, who asked us to support the bill.

"Once I knew they were comfortable with it I knew it must have been a true compromise bill."

While lawmakers met their midnight deadline for most of their spending plans, some are still in limbo. Legislators ended a three-day special session at midnight and completed everything in the $6 billion state budget except the Mississippi Public Service Commission’s spending plan.

The PSC continues to function, even though legislators failed to pass the agency’s budget. The state fiscal year started Wednesday.

PSC Chairman Lynn Posey says Attorney General Jim Hood told the commission Wednesday that it should keep performing its duties to regulate utilities.

Posey says the three commissioners and staff members are working, but travel has been limited.

Lawmakers are expected to be called back to the Capitol next week to finish the work on those budgets. They also may re-consider a few appropriations bills vetoed by Gov. Barbour Wednesday, including a bill that would take $7 million from the state's Rainy Day Fund and direct it to the Department of Mental Health in support of Community Mental Health Centers.

The Associated Press contributed to this report.

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