Bill raising fees for hospitals gets early OK

DENVER • A bitterly divided state House of Representatives gave preliminary approval Tuesday to a bill that would raise fees on hospitals across the state to expand health care programs.

"This is a house of cards," said Rep. Cory Gardner, R-Yuma. "This will increase the cost of care, it will drive up the cost of doing business, and it will add to the federal debt and deficit."

The bill, proposed by Rep. Mark Ferrandino, D-Denver, would charge hospitals 2.4 percent of revenues each year and would raise roughly $600 million. That would be doubled by federal funds, and then shoveled back to the hospitals to help pay for expanded care and coverage.

Those lowered costs for hospitals, said Ferrandino, will reduce the cost of treating uninsured patients, driving down what those who have coverage pay when the losses from unpaid bills are passed on.

"They'll (the hospitals) see more money because they'll see higher reimbursement rates, and they'll see less uninsured people and people with actual coverage," Ferrandino said.

He estimated that more than 100,000 Coloradans could be covered by the new program, which boosts Medicaid and the Children's Health Plan Plus.

Gardner predicted hospitals will have to shift the cost of the fee onto consumers, which will increase health insurance premiums. He also questioned if the federal government could afford to send Colorado $600 million in matching funds.

"If somebody came to me and said, Cory, if you write me a check for $100,000, and I'll write you a check for $133,000, does that sound too good to be true? Yes it is," Gardner said. "Las Vegas doesn't have these kinds of odds. But it's the taxpayer that's going to be shooting craps."

Ferrandino replied, "I love listening to Cory's campaign speeches."

Ferrandino said after three years, the state will evaluate how much money has been collected and how much handed out to hospitals. If it's costing more than it's worth, it'll be scrapped, he said.

A similar program is working in 23 other states, Ferrandino said.

"This is the first step at the state level to make sure we can have some sanity in our health care system," Ferrandino said. The bill still needs final approval in the House before heading to the Senate where it is expected to pass.