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Connecticut considers 3% tax on physician revenue

Physician Practice Advisor, March 14, 2007

Connecticut state lawmakers are considering a 3% tax on physicians' revenues to help pay for a statewide $900 million universal healthcare plan, according to the Hartford Courant.

In addition to taxing healthcare providers, lawmakers are seeking to raise taxes on cigarettes and initiating a new vanity tax on elective cosmetic surgery to fund the proposal. Proponents say the tax on doctors' revenues will generate $600 million for the state and will be offset by an anticipated $300 million in federal reimbursement. In an attempt to soften the blow, the plan also calls for increasing Medicaid reimbursements to physicians by 30%, at a cost to the state of $500 million.

More than a dozen healthcare providers traveled to the capitol to oppose the proposal in March. Physicians told lawmakers that the tax would likely drive physicians out of the Medicaid system and reduce patient access to healthcare. 

Click here to read the Hartford Courant article.