-------- Original Message --------
Subject: RE: Does Gov. Perry have a tax increase awaiting his approval?
Date: Wed, 6 Jul 2011 17:21:02 +0000
From: Steve Levine
To: 'Gardner Selby' <wgselby@statesman.com>

This tax already exists.  It is paid by all HMOs and insurers (see Insurance Code Chapter 222) 

By expanding the Medicaid HMO model to more counties and more populations, more tax revenue is generated. It's just like a new store that generates retail activity would be subject to the existing sales tax and generate more tax revenue.

According to the HB 1, the expansion will generate about $240 million in additional tax. The rest of the $460 million is to come from decrease in utilization of hospital and other high cost services once the HMO model is expanded.