Thursday, February 7, 2013

House rep promotes abolition of Driver Responsibility surcharge

State Rep. Larry Gonzalez held a press conference today calling for the abolition of Texas' Driver Responsibility surcharge, and the Texas Criminal Justice Coalition took the opportunity to issue a public policy report (pdf) calling for its repeal. You can watch the press conference here.

TCJC and Rep. Gonzalez have come up with the best pitch for abolishing the DRP I've heard yet: The Lege doesn't have to pay for it immediately. The state has long short-changed trauma care hospitals who're supposed to receive reimbursement from the fund for uncompensated care, diverting the money to "certify" in the budget in order to draw down unrelated federal funds. Reported TCJC, "budget writers have allowed the dedicated “Trauma Facility & Emergency Medical Services Account” to accumulate a balance of over $370 million in unappropriated funds to help balance the biennial budget – money that could be used to defray an even larger portion of the hospitals’costs."

The DRP at present covers only a portion of uncompensated care costs (which will be somewhat alleviated in states that expand Medicaid under Obamacare). "In 2012, Texas trauma hospitals incurred a total of $234 million in uncompensated care costs but received only $55 million in reimbursements from the state in the form of DRP surcharge revenue." TCJC recommends continuing payouts at current levels until the $370 million runs out, which would give the state until 2019 to figure out a more stable, alternative funding source. Good thinking. And best of luck to Rep. Gonzalez: Grits readers should call their state representative and ask them to join him in supporting HB 104.

MORE: From the Texas Tribune.

See prior, related Grits posts:

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