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Since HIE is a public good, similar to other public utilities, many states are considering utilizing taxes to support HIEs. Many states are beginning to explore this model because health information exchange provides such a significant “shared” benefit, since all the stakeholders benefit from the exchange. Rather than charge specific stakeholders for use, the public supports the exchange as common infrastructure. Usually, state legislation is required to levy a new tax. State governments may use various methods of taxation including: revenue based, per member/per month, transaction fees, or part of a provider or hospital’s state licensure fee. Given the current economic and political environment, it may be difficult to enact legislation levying new taxes on businesses or individuals.
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