2003 Senate Bill 589 / Public Act 113

Introduced in the Senate

June 12, 2003

Introduced by Sen. Bob Emerson (D-27)

To reduce from seven percent to six percent of the total industry revenues the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) fees on nursing homes and hospital long-term care units. The assessment imposes a "bed tax" on health care providers, which allows the state to collect and disburse a greater amount of federal Medicaid revenue. According to the Senate Fiscal Agency, while not specified in the bill, it is recognized that this bill was introduced to enable the state to retain some amount of these fees to offset an equal amount of general fund revenue that would otherwise be used to maintain spending levels in the Department of Community Health budget.

Referred to the Committee on Appropriations

June 19, 2003

Reported without amendment

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

Substitute offered

To replace the previous version of the bill with one which specifies that the state would retain $38 million of the MMQAA fees to offset an equal amount of general fund revenue that would otherwise be used to maintain spending levels in the Department of Community Health budget.

The substitute passed by voice vote

Passed in the Senate 37 to 0 (details)

To reduce from seven percent to six percent of the total industry revenues the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) fees on nursing homes and hospital long-term care units. The assessment imposes a "bed tax" on health care providers, which allows the state to collect and disburse a greater amount of federal Medicaid revenue. The bill would authorize the state to retain $38 million of these fees to offset an equal amount of general fund revenue that would otherwise be used to maintain spending levels in the Department of Community Health budget.

Received in the House

June 19, 2003

Referred to the Committee on Appropriations

June 25, 2003

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Passed in the House 106 to 0 (details)

To reduce from seven percent to six percent of the total industry revenues the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) fees on nursing homes and hospital long-term care units. The assessment imposes a "bed tax" on health care providers, which allows the state to collect and disburse a greater amount of federal Medicaid revenue. The bill would authorize the state to retain $38 million of these fees to offset an equal amount of general fund revenue that would otherwise be used to maintain spending levels in the Department of Community Health budget.

Signed by Gov. Jennifer Granholm

July 24, 2003