An Arizona hospital is now urging the Arizona Supreme Court to quash the levy that finances Medicaid expansion under the Affordable Care Act.
Green Valley Hospital is breaking ranks with other hospitals by siding with the conservative group, Pacific Legal Foundation, in asking the high court to declare that the "assessment'' it pays is actually a "tax.'' That distinction is important.
Green Valley hospital administrator John Matuska said his hospital largely serves Medicare patients — and it’s paying far more in its assessment than it gets back.
"In essence, I'm not being paid to treat Medicaid patients under this program. And everybody else is," said Matuska.
If the Court rules that the assessment is in fact a tax, it means the legislation authorizing AHCCCS to collect millions of dollars a year from hospitals was illegally enacted. That’s because the state Constitution requires a two-thirds vote for tax increases from both chambers. The 2013 legislation did not get that margin.
Green Valley recently filed for bankruptcy protection.