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

Public Act 161 of 2014

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.   Official Text and Analysis.
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
Passed 33 to 5 in the Senate on May 8, 2014 (same description)
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.
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
Passed 86 to 24 in the House on May 27, 2014 (same description)
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.
Signed by Gov. Rick Snyder on June 11, 2014

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