The Scioto County Commissioners met Thursday in a regular scheduled meeting during which they further discussed the Medicaid managed care organizations (MCO) sales tax elimination.
“No fix has been presented out of the Senate,”Commissioner Bryan Davis stated.
Last week Davis had hoped for a resolution through an amendment in the Senate that could offer a full replacement. The current law provides that effective October 1, 2009 “all transactions by which health care services are paid for, reimbursed, provided, delivered, arranged for, or otherwise made available by a Medicaid health insuring corporation pursuant to the corporation’s contract with the state” is subject to both state and local sales and use taxes collected by the Department of Taxation. For purposes of collecting the tax, the MCO is considered the consumer of the service.
The state and local sales taxes are collected by the state and the local portion is remitted to the county or transit authority. For purposes of applying local sales taxes, the state credits the local sales tax to the county of residence of the MCO enrollee. Overly simplified, the MCO tax is a sales tax on Medicaid transactions. No matter which side of the debate regarding whether or not the tax should be permissible, it is still expected to hit budgets hard, costing the County a potential lost revenue of $2.1 million.
“We continue to lobby for a fix,” Davis commented.
He also continues to hope for a resolution that is waiting in the House.
In addition to discussion the MCO tax, Commissioners conducted standard business. They also reappointed several planning commission members.
The Scioto County Commissioners meet at 9:30 a.m. every Tuesday and Thursday on the first floor of the Scioto County Common Pleas Court, located at 602 7th Street in Portsmouth.
Reach Nikki Blankenship at 740-353-3101 ext. 1931.