Democratic Sen. Hob Bryan says House and Senate negotiators have signed an agreement in principle for a hospital tax, which is key to reaching a deal on the state budget.
Bryan of Amory said Sunday the agreement calls for a $60 million hospital tax that could increase to $90 million once the state stops receiving federal stimulus money in 2010. In return, the hospitals could save nearly $100 million through the reversal of previous budget cuts and the prohibition of future cuts.
Lawmakers say the tax is needed to help cover the cost of Medicaid, a government funded health program.
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