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Certificate of Need Oversight Results in Healthy Growth in Number of Hospice Providers

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Florida’s elderly population continues to grow at a rapid rate, and so does the number of Hospice enrollees. Hospice is the primary model for end of life care in the United States, and is currently regulated in Florida by a process known as “Certificate of Need.” When the Constitutionally-mandated Constitution Revision Commission considered a measure to lift the Certificate of Need (CON) regulation, Florida TaxWatch saw it as both appropriate and timely to conduct an in-depth study of hospice facilities in Florida.

While the majority of the country has experienced explosive growth in the number of hospice providers, a new report from the state’s independent, nonpartisan, nonprofit public policy research institute, Florida TaxWatch, shows that CON oversight has actually resulted in a modest and steady growth for Florida. This process has helped reduce the likelihood of oversaturation of providers and ensure that more rural areas are covered so Floridians all over the state have access to hospice, according to the research. Because CON averts over-saturation of markets, it contributes to hospice programs being able to build state-of-the-art in-patient units funded by local community philanthropy.

“Patients with terminal diagnoses are faced with difficult decisions and an overwhelming amount of stress. Hospice providers can relieve much of the pain and stress, but that is if you have access to one,” said Florida TaxWatch President and CEO Dominic M. Calabro. “Florida has the second most hospice patients in the nation but ranks 37th in the number of hospice providers. The Sunshine State should retain the CON process to ensure that ALL Floridians have the access to the quality care they need and at the level of care they require.”

The Constitutionally-mandated Constitution Revision Commission measure to remove the Certificate of Need requirement was withdrawn from consideration by the Commission. If Florida were to repeal Certificate of Need for hospice, the demand for geriatric specialists could outpace the supply, Medicaid and Medicare fraud could increase, and rural patients could have limited access to hospice providers. Florida TaxWatch recommends retaining the CON process and continuing to identify ways to better control hospice costs, improve the quality of hospice care, and direct investments into medically-underserved areas.

Read the full report on Evaluating the Need for CON in Hospice here.

ICYMI: Stronger Safer Florida Coalition Urges Congress To Exempt Reinsurance From Border Adjustment Tax Legislation

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Florida Homeowners Property Insurance Could Rise by 30 Percent Per Year

In March, Florida Taxwatch, the state’s independent, nonpartisan, nonprofit taxpayer research institute & government watchdog, released a study called The Effects of a Border-Adjusted Tax on Florida’s Property Insurance Market. The study takes a close look at what Floridians could expect if potential federal legislation that creates a border-adjusted corporate income tax is implemented. Since property insurers rely heavily on foreign reinsurance to diversify low-frequency-high-severity natural catastrophes, such as hurricanes, states most vulnerable to catastrophic losses—such as Florida—would be most impacted by applying a border-adjusted tax to reinsurance.
The proposed 20 percent border-adjusted tax would have a significant negative impact on Florida’s home insurance premiums, raising the cost of commercial and residential property insurance by $2.6 billion annually. Florida homeowners’ premiums, on average, would increase by $910 per year.
“While other countries around the world use tax schemes like the border-adjustment proposal, no developed market trading partner of the U.S. applies it to reinsurance transactions. Applying this proposed border-adjusted tax to reinsurance transactions would have a disproportionate and negative effect on Florida,” said Florida TaxWatch President and CEO Dominic M. Calabro. “Application of the tax would dramatically increase costs for insurance companies and consumers, hurt our state’s economic competitiveness, and kill tens of thousands of jobs.”
“The long-term damage to the state economy by the application of such a tax on reinsurance would put Florida behind for years,” said Stronger Safer Florida Coalition member, Associated Industries of Florida President and CEO Tom Feeney. “A decrease in earnings would propel the cost of living higher, while increased costs for hurricane-risk insurance would hamper Florida’s economic growth through declines in business investment in the state. Due to Florida’s susceptibility to major storms, it is crucial that insurance is affordable for businesses and residents.”
Read the full report here.
For more information, visit StrongerSaferFlorida.com.

FLORIDA TAXWATCH STATEMENT ON PASSAGE OF HB 7109

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TALLAHASSEE, Fla. – Florida TaxWatch President and CEO Dominic M. Calabro released the following statement on the HB 7109, which passed the House earlier today –
“Florida TaxWatch commends the Florida House for their commitment to Florida taxpayers. Their tax package is a win for the state and will reduce the tax burden on Floridians, allowing them to make their own decisions on how their hard-earned money is spent.
“The package addresses numerous TaxWatch recommendations, including reducing the onerous business rent tax, which is the only statewide sales tax on commercial leases in the nation. HB 7109 reduces the business rent tax by 1.5 percent for two years. After that, the rate is reduced permanently by 0.5 percent.
“Florida TaxWatch research has found that this onerous tax impedes small businesses and startups from reaching their potential by imposing additional costs upon them, restricting opportunities for growth and forcing companies to cut back on hiring. The House’s tax package would boost our state’s economy and encourage hiring of new employees.
“The package also establishes 3 sales tax holidays – Back to School (ten days), disaster preparedness (nine days) and veterans (one day) – the benefits of which have been highlighted in Florida TaxWatch research.
“Florida TaxWatch hopes that the Senate passes a similar comprehensive tax package that addresses the burdensome business rent tax and finally provides some relief to Florida taxpayers.”

Time to Take Immediate Action on Everglades Says Florida TaxWatch

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TALLAHASSEE, Fla. – Continued inaction on the Everglades problem will be a detriment to taxpayers and the future of the state, says the latest report from Florida TaxWatch, the state’s premier government watchdog group. The organization finds that if the state does not find a solution to the algae blooms and other problems from diversion of water from Lake Okeechobee, the state, tourism industry, and the overall economy would lose millions in revenues, not to mention the negative health and environmental impacts.
“Our environment is critical to our state, both as an economic driver and to keeping our flora and fauna thriving. If we continue to ignore the problem flowing from Lake Okeechobee, the state will suffer,” said Florida TaxWatch President and CEO Dominic M. Calabro. “Local economies will suffer as algae spreads throughout the once-pristine waterways, property values will plummet and tourists will stop coming. These are all very real outcomes if we don’t find a solution.”
For decades, the Everglades have withstood expanding development, increased agricultural pressure and significant changes in natural systems. The intense development of Central and South Florida has increased the timing of water runoff and the levels of nutrients and pollution in its waters.
This major crisis affects both the natural systems and those who depend on them, as water is discharged from Lake Okeechobee away from the Everglades and diverted west into the Caloosahatchee River basin and east into the St. Lucie River basin. This results in the aforementioned algae blooms, leading to significant problems for the affected regions.
Read the full report: http://www.floridataxwatch.org/library/evergladesinaction