Miss. leaders: No plan on hospital tax hike

Plans to raise hospital taxes to help pay for Medicaid have stalled in the 2009 regular legislative session.

House and Senate leaders negotiating the tax hike left the state Capitol today with no agreement. The session is in a recess, and negotiators had hoped to reach a compromise before the full Legislature returns next week to finalize a state spending plan.

Senate Appropriations Committee Chairman Alan Nunnelee, R-Tupelo, said he doesn’t expect Medicaid services to be cut because of the lack of agreement. He said it’s possible other state agencies could face deeper budget cuts to help pay for the health-care program.