Medicaid Ailing? The Rx: One Point Six Percent

To help plug some of the two billion dollar budget deficit, Governor Sonny Perdue is proposing what is being commonly called the "hospital bed" tax.

It was widely known Governor Perdue was considering such a measure to help plug the 200 million dollar Medicaid and Peachcare shortfall.

And in his State of the State address, Perdue announced a one point six percent tax on hospitals and insurance plans. Perdue's proposal is actually less than previous numbers that were recently floated. Still, it upset Democrats, like State Senator Robert Brown of Macon.

"I've never heard of any process like that, and it certainly doesn't make any sense," said Brown. "At first blush, this just seems like the absolute wrong way to go."

Some Republicans privately expressed apprehension about the proposal, although, they say the alternative is "much worse." Several hospital and health care lobbyists say they need to study the plan more before they make a final determination. Although, one lobbyist at the Capitol remarked, "It's doubtful hospitals will like this."