Arizona hospitals release financing proposal

Arizona legislators gather Wednesday, Jan. 19, 2011 at the Capitol in Phoenix to open a special session. The session was called to authorize Gov. Jan Brewer to ask the Obama administration for a waiver that would let Arizona suspend coverage for a fifth of its Medicaid enrollment to help close a budget shortfall. (AP Photo/Matt York)

The Arizona Hospitals and Healthcare Association is releasing some details of its financing proposal, that it says could help avoid a big cut in Medicaid enrollment due to the state’s budget shortfall.

The group says its one-year assessment on hospitals would be based on inpatient days and raise $300 million, triggering additional federal funding on a two-for-one basis.

Of the $300 million, two-thirds would be used to help preserve Medicaid eligibility and one-third funneled back to hospitals. The association says that portion would be used to avoid passing on the assessment to private insurers and patients.

The hospital group says other so-called “revenue enhancements” and spending cuts would be needed in addition to its proposed assessment.

Gov. Jan Brewer’s proposed budget anticipates saving $541.5 million from the Medicaid cut.