Physicians fighting back as states turn to provider taxes

Several states have begun to tax physician revenues to fund public health programs but are being fought by local medical societies. For example, Kentucky has passed a law taxing physician gross receipts, but the Kentucky Medical Assn is suing the state. The new law would charge physicians 2% of their gross receipts, hospitals 2.5% and pharmacies 25 cents per prescription. The proceeds, about $225 million, would compensate for Medicaid matching funds lost because of the restrictions on provider taxes.
Several states are beginning to tax physician revenues to fund rapidly growing Medicaid costs and other programs extending medical benefits to the poor and uninsured. But state medical associations are [...]