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Garrett Applauds New Jersey Legislatures' Rejection of Governor's Proposed Hospital Bed Tax

Location: Washington, DC

Garrett Applauds New Jersey Legislatures' Rejection of Governor's Proposed Hospital Bed Tax

Yesterday, Congressman Scott Garrett issued the following statement, expressing his hearty approval of the New Jersey State Legislature's rejection of Governor Corzine's proposal to tax our state's hospitals $430 million through a $1,424 per-bed, per-month tax on the sick.

Garrett had organized the New Jersey Congressional delegation in May to request the Federal Centers for Medicare and Medicaid, which would have had to approve the proposal had it been accepted by the State Legislature, to reject the tax as well. Garrett's letter to CMS called, the tax "bad public policy" and noted that the "tax would essentially bankrupt many smaller hospitals in the state and force the rest to cut services and/or reduce employment."

(Congressman Garrett's statement follows.)

"I was relieved to learn today that Governor Corzine's proposed "Sick Tax" on New Jersey's hospitals was rejected by the State Legislature. Increasing taxes on hospitals that take care of our sick -- care that is mandated by law - in an effort to make up for budget shortfalls is simply unconscionable.

New Jersey hospitals are already dealing with over-burdensome regulations, low reimbursement rates, and inequitable "Charity Care" disbursements. New Jersey hospitals are already losing money each year. This tax would have caused them to cut staff, reduce services, or even close their doors.

Had the Governor's plan made it out of Trenton, I stood ready to fight this "Sick Tax" in Washington. And, I remain ready to stand with our hospitals and health care professionals."

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