The Wisconsin Hospital Association is agreeing to pay more taxes in exchange for an increase in federal aid to cover people using the Medicaid Program.

Sid Sczygelski the Chief Financial Officer at Aspirus Hospital in Wausau says the current reimbursement rate for hospitals doesn't cover the actual cost of any treatments they provide.

State Representative Donna Seidel and other legislators are considering a proposal that would increase the amount of taxes that hospitals pay in return, they would get more federal money to help cover the costs of those who don't have health insurance.

"The hospital assessment is really going to be one of the most effective ways for Wisconsin to attract 400- 500 million dollars from the federal government."

Representative Seidel says the money will go toward the jointly funded the Medicaid Program.

She says right now hospitals in Wisconsin get about 50 cents for every $1.50 they spend providing care to patients who use the program.

" It helps our hospitals that have had one of the lowest medicaid reimbursement rates in the country and have had it for over 12 years."

Sczygelski says Aspirus supports the proposed tax hike because the money they are currently getting only covers 20-30 percent of the actual cost of any procedure.

"This is one way we can receive a greater matching dollars from the federal government."

He says about 7% of their patients use medicaid and increasing the hospitals' reimbursement rate will reduce their need to shift that cost to their insured patients.

" You'll see less cost shifting from the commercially insured patient and the business industry. By better covering the cost of the medicaid patient we can provide less of a price increase to the commercial side and I don't think you'll see anything different with delivery of care at a bedside. "

Representative Seidel says 17 states are already taking advantage of the federal program.