State officials and a group representing New Hampshire's hospitals say they've settled a lawsuit over the state's Medicaid Enhancement Tax – ending a year-long dispute that had threatened a key source of funding for the safety-net insurance program. The tax is paid by hospitals, which get most of the money back in the form of Medicaid payments. That arrangement allows the state to unlock hundreds of millions of dollars in federal matching funds, which are used to help pay for New Hampshire's Medicaid program.
