2013 Senate Bill 335 / Public Act 58

Extend Medicaid health insurance claims tax

Introduced in the Senate

April 30, 2013

Introduced by Sen. Roger Kahn (R-32)

To give the Department of Treasury to power to increase a 1 percent health insurance claims tax intended to “game” the federal Medicaid system in ways that result in higher federal payments to Michigan’s medical welfare system, without any further authorization by the legislature.

Referred to the Committee on Appropriations

May 16, 2013

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To adopt a version of the bill that extends the sunset, not eliminate it, and which does not empower the Department of Treasury to raise the tax without further authorization.

The substitute passed by voice vote

Passed in the Senate 25 to 13 (details)

To extend from 2014 to 2018 the sunset on a 1 percent health insurance claims tax intended to “game” the federal Medicaid system in ways that result in higher federal payments to Michigan’s medical welfare system.

Received in the House

May 16, 2013

Referred to the Committee on Appropriations

May 22, 2013

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Amendment offered by Rep. Martin Howrylak (R-41)

To reduce the claims tax by 0.2 percent each year.

The amendment failed by voice vote

Passed in the House 65 to 44 (details)

To extend from 2014 to 2018 the sunset on a 1 percent health insurance claims tax intended to “game” the federal Medicaid system in ways that result in higher federal payments to Michigan’s medical welfare system.

Signed by Gov. Rick Snyder

June 11, 2013