After two years of debate and months of closed-door negotiations, Utah’s Republican 
governor and state legislature have agreed on a deal to expand Medicaid in that state, covering about 126,000 residents.
Adoption of the plan would make Utah the first state led by a Republican governor and legislature to expand Medicaid through a market-driven system.
Some details are still being negotiated with federal regulators, but the broad outlines of the plan call for hospitals, doctors and drug companies to pay a tax or fee to help cover the costs of the expanded coverage. Colorado and Arizona impose similar fees on providers.
RyLee Curtis, an analyst with the Utah Health Policy Project, said hospitals in Utah would benefit financially from an expansion of Medicaid even after paying the proposed tax, because they would be reimbursed for care they now provide free to uninsured individuals.
The plan still requires approval by the full Utah legislature, the Obama administration and healthcare providers , but observers in the state do not regard these as serious obstacles
Gov. Gary Herbert said, “There is still work to be done, but I believe we now have a framework in place that will provide care for Utah’s most in need while being responsible with limited taxpayer funds.”
“This agreement holds out hope that Utah’s compassion can harmonize with her common sense and be fiscally sustainable over the long term,” said Senate President Wayne Niederhauser.
