Arizonans Against the Hidden Healthcare Tax

What is the hidden healthcare tax? Arizona business and healthcare leaders have long understood the financial impact of government underpayment to healthcare providers. However, a study sponsored by the Arizona Chamber Foundation and conducted by the Lewin Group, now quantifies the hidden healthcare tax. The study reveals the financial burden of government underpayment for hospital care delivered to patients covered by public payers, Arizona Health Care Cost Containment System (AHCCCS) and Medicare. The bottom line: An Analysis of Hospital Cost Shift in Arizona reveals that when government does not pay its fair share for hospital services, businesses and consumers pick up the tab in the form of higher health insurance premiums.

How does the hidden healthcare tax impact employers’ financial health and consumers’ pocketbooks? Consider this:

• Arizona employers and the state’s 3.5 million privately insured consumers pay 40 percent above cost for hospital services because the state and federal governments drastically underpay hospitals for those same services.
• In 2007, private insurance payments for Arizona hospital services exceeded costs by $1.3 billion in order to offset AHCCCS and Medicare underpayment as well as to cover care for which there was no payment source.

How do hospitals fare financially with the hidden healthcare tax? Arizona hospital margins are among the lowest in the nation. In 2007, the state's hospital margins were 5.3 percent compared to 7.8 percent for hospitals in the Mountain division (Colorado, Idaho, Nevada, New Mexico and Wyoming). Nationally, hospital margins were 6.1 percent.

Members of Arizonans Against the Hidden Healthcare Tax

Arizona’s business and healthcare organizations have joined  together to oppose cuts to AHCCCS, which increase the hidden healthcare tax. Nearly 40 business chambers, health plans as well as organizations representing hospitals and physicians support Arizonans Against the Hidden Healthcare Tax.

Aetna, Inc.
Ahwatukee Foothills Chamber of Commerce
America’s Health Insurance Plans
American Academy of Pediatrics/Arizona
Apache Junction Chamber of Commerce
Arizona Association of Health Underwriters
Arizona Association of Health Plans, Inc.
Arizona Chamber of Commerce and Industry
Arizona College of Emergency Physicians
Arizona Hospital and Healthcare Association
Arizona Medical Association
Blue Cross and Blue Shield of Arizona
Chandler Chamber of Commerce
CIGNA Healthcare of Arizona, Inc.
East Valley Chambers of Commerce Alliance
Flagstaff Chamber of Commerce
Gilbert Chamber of Commerce
Greater Phoenix Chamber of Commerce
Health Net of Arizona
Humana, Inc.
Marana Chamber of Commerce
Mesa Chamber of Commerce
National Federation of Independent Business/Arizona
Nogales-Santa Cruz County Chamber of Commerce
Northern Pima County Chamber of Commerce
Obstetrix Medical Group
Prescott Chamber of Commerce
Queen Creek Chamber of Commerce
Rio Rico Chamber of Commerce
Scottsdale Chamber of Commerce
Southern Arizona Chamber of Commerce Alliance
Tempe Chamber of Commerce
Tucson GLBT Chamber of Commerce
Tucson Hispanic Chamber of Commerce
Tucson Metropolitan Chamber of Commerce
United Healthcare