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2014 Senate Bill 893: Re-impose medical services tax to get more federal Medicaid money

Public Act 161 of 2014

  1. Introduced by Sen. Roger Kahn (R) on March 27, 2014, to re-impose a 6 percent use tax on the managed care health care providers (hospitals) that provide most Medicaid services, which is designed to “game” the federal Medicaid program in ways that result in higher federal payments to Michigan’s medical welfare establishment (including those same hospitals). This tax had been suspended 2011 in favor of different version, which did not raise enough to maximize the extra federal increase potential.
    • Referred to the Senate Appropriations Committee on March 27, 2014.
      • Reported in the Senate on May 8, 2014, with the recommendation that the substitute (S-3) be adopted and that the bill then pass.
    • Substitute offered in the Senate on May 8, 2014. The substitute passed by voice vote in the Senate on May 8, 2014.
  2. Passed 33 to 5 in the Senate on May 8, 2014.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on May 8, 2014.
    • Referred to the House Appropriations Committee on May 8, 2014.
      • Reported in the House on May 14, 2014, without amendment and with the recommendation that the bill pass.
    • Amendment offered by Rep. Mike Shirkey (R) on May 22, 2014, to earmark some use tax revenue to paying-down unfunded liabilities in the public school pension system. The amendment failed by voice vote in the House on May 22, 2014.
  4. Passed 86 to 24 in the House on May 27, 2014, to re-impose a 6 percent use tax on the managed care health care providers (hospitals) that provide most Medicaid services, which is designed to “game” the federal Medicaid program in ways that result in higher federal payments to Michigan’s medical welfare establishment (including those same hospitals). This tax had been suspended 2011 in favor of different version, which did not raise enough to maximize the extra federal increase potential.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on June 11, 2014.

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