NASHVILLE - A proposed 3.5 percent "coverage assessment" on hospitals, aimed at blocking estimated $659 million in TennCare cuts, cleared its first legislative hurdle this afternoon.
Senate General Welfare Committee members approved the measure in a bipartisan 8-0 vote. The bill was brought by the Tennessee Hospital Association.
TennCare cuts would have a "serious detrimental impact on hospitals across the state," the bill's sponsor, Sen. Doug Overbey, R-Maryville, told panel members.
The assessment - lawmakers won't call it a tax because hospitals themselves are pushing it for a specific purpose - would raise $229.5 million.
The revenue would draw a 2-to-1 federal Medicaid match that the state could use to offset many proposed or approved cuts to the 2010-2011 budget that takes effect July 1.
The bill still must pass the Senate Finance Committee ands the full Senate as well as clear House hurdles before it can go to Gov. Bredesen, whose administration is not opposing the measure.
See Thursday's Times Free Press for complete coverage.