Health care changes could lower hospital taxes

Published: Saturday, April 13, 2013 at 3:42 p.m. Last Modified: Saturday, April 13, 2013 at 7:08 p.m.

"It's a hefty bite for the people in Southeast Volusia," said Joe Benedict, chairman of the Southeast Volusia Hospital District's Board of Commissioners.

The owner of a $115,000 homestead property that falls in the Southeast Volusia Hospital District can expect to shell out $196.95 in hospital taxes. Just over the line in the Halifax Hospital Taxing District, the owner of the same home would pay only $81.25.

But two big changes could be in store for Volusia County's hospital taxing districts, and either or both could lighten local tax bills.

Bert Fish Medical Center in New Smyrna Beach is looking to partner with a larger hospital system that would reduce the tax burden for Southeast Volusia. Meanwhile, the federal health care law could move the Sunshine State toward universal coverage, eliminating much of the reason why hospital taxing districts were created in the first place.

Gov. Rick Scott has endorsed tapping into $51 billion in federal funds and expanding Medicaid, a state-federal program that helps provide health care to the needy, to cover more than 1 million Floridians. Lawmakers so far have shot down expanding Medicaid, but they are debating alternative proposals that would extend coverage by subsidizing private insurance.

Republican Sen. Joe Negron's plan would allow the state to still tap into federal funds, but competing proposals would forego federal funds and cover far fewer patients.

Volusia County is unique in that it has three hospital taxing districts, covering the Daytona Beach area, Southeast Volusia and West Volusia. Collectively, Volusia County taxpayers contribute $47.3 million to care for indigent patients and subsidize other health care services.

When the districts were created starting in the 1920s, Florida was still developing, and health care was radically different, said Dominic Calabro, president and CEO of Florida TaxWatch.

Times have changed. Medicare and Medicaid social programs that helped to extend coverage to the elderly and needy were created during the 1960s.

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Health care changes could lower hospital taxes

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