North Carolina Dec. 1 expanded Medicaid to low-income adults under the Affordable Care Act and state legislation enacted in March. Under the legislation, North Carolina hospitals will pay for the state’s share of the cost through an estimated $550 million annual tax, which the state will reimburse through federal funds if the Centers for Medicare & Medicaid Services and Government Accountability Office continue to approve the payments each year.

“The hospitals are paying this new tax because it is the right thing to do,” said NCHA President and CEO Steve Lawler. “Our state’s hospitals and the remarkable people who work there have always been about doing the right thing for the people and communities they serve. We are so thankful that the General Assembly, Governor Cooper and our health system and hospitals members created a pathway to make access to high-quality health care available to so many more people.”

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