Archives     Advertise     Editorial Calendar     Subscribe     Contact Us    


Tennessee Hospitals Push to Revise Federal Tax Bill


 

As Congress works to resolve differences between Senate and House versions of federal tax reform legislation, Tennessee Hospital Association is urging the Tennessee congressional delegation to reconsider several components of the bills. These items include the Senate proposal to repeal the individual insurance mandate, changes to tax exempt bonds in both bills and repeal of itemized deductions for medical expenses in the House bill.

Unintended consequences for hospitals and health systems as a result of some provisions in the bills could have a major negative impact in numerous communities. THA President and CEO Craig Becker, in talking about the potential impact of the legislation, stated, "While the goal of promoting economic growth through tax reform has been made clear by members of Congress, there are real ramifications in the bills for hospitals that threaten economic viability, especially in rural areas of Tennessee where we have already seen eight facilities close since 2012."

As the bill currently stands, there are certain provisions that would make it difficult for hospitals to operate in the black -- both as healthcare providers and employers for thousands of Tennesseans - which threatens the future of healthcare across the state. Hospitals are often the largest employers in a county, and in some cases, can represent as much as 20 percent of a community's employment and income.

Because of the potentially disastrous impact to hospitals, THA strongly believes the following provisions should be removed from the final bill.

  • Repeal of the tax penalties for the Affordable Care Act's (ACA) individual insurance mandate, which would eliminate the tax faced by those Americans who choose to go uninsured. The Congressional Budget Office (CBO) analysis indicates the mandate's repeal would create a cost savings of $330 billion over the span of 10 years -- but the savings are based on the estimated loss of insurance for 13 million Americans as a result. This is certain to drive up uncompensated care for hospitals, adding the existing burden of charity care and financial challenges as a result of cuts to provider reimbursement contained in the ACA.
  • Repeal of the tax exclusion for interest on tax-exempt private activity bonds (PABs) and tax-exempt advance refunding bonds, which includes activities of 501(c) (3) hospitals. PABs and advance refunding bonds are a critical source of financing for hospitals and other types of infrastructure that stabilize local economies and make growth possible. Removal of the tax exclusion would deal another financial blow to nonprofit hospitals and further cloud the future of many facilities in Tennessee. In addition to nonprofit hospitals, the bond repeals would negatively impact airports, transportation, water and wastewater infrastructure, among others.
  • Repeal of itemized deductions for high medical expenses.

Tennesseans struggling with serious disabilities or terminal illnesses often spend their life savings while caring for themselves or a loved one. The deductibility of large medical expenses can provide greater financial stability for these individuals and families. In a time of high deductibles for the insured or out-of-pocket costs for those who still lack coverage, this tax deduction is critically important for Tennesseans.

 
Share:

Related Articles:


Recent Articles

Cancer Care on the Cutting Edge

Nashville physician-scientists are helping lead the way in advancing cancer care.

Read More

The Evolution of Senior Living

The senior living industry is undergoing a makeover as baby boomers shift focus from medical-directed care to hospitality-driven services.

Read More

When Basic Science Becomes a Breakthrough

Noted immunologists joined forces at the recent International Cancer Immunotherapy Conference to discuss the importance of fostering and funding basic science.

Read More

Dr. Meredith McKean Brings New Hope, More Options for Melanoma Patients

Oncologist Meredith McKean, MD, MPH, overseeing Sarah Cannon's Melanoma Research Program

Read More

ONcology Rounds

News of note in cancer research, treatment and partnerships.

Read More

Ascension Saint Thomas Opens Cancer Center

Ascension Saint Thomas recently celebrated the grand opening of their comprehensive new cancer center on the Midtown campus.

Read More

NMGMA 10 Minute Takeaway

Medicare Part B representative from Palmetto GBA offered updates and resources to navigate compliance.

Read More

Improving Quality, Lowering Cost of Care for Seniors

Five years into the Medicare Shared Savings Program, more and more ACOs are beginning to demonstrate the ability to improve quality while lowering costs.

Read More

Planning Ahead: Patients & Power of Attorney

The time to think about a durable power of attorney is long before it's needed. Barbara Moss discusses the importance of the document in healthcare.

Read More

Council on Aging Honors Middle Tennesseans

The Council on Aging (COA) of Middle Tennessee hosted their 27th Annual Sage Awards on Oct. 29. With a belief that aging should be celebrated and embraced and that older adults have a lifetime of wisdom and experience to offer communities, the Sage Awards are presented each year to older adults who have made outstanding contributions to Middle Tennessee.

Read More

Email Print
 
 

 

 


Tags:
None
Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: