2016 Senate Bill 957 / Public Act 189

Revise medical services tax imposed to get more federal money

Introduced in the Senate

May 10, 2016

Introduced by Sen. Jim Marleau (R-12)

To revise a tax the state imposes on health care providers so as to “game” the federal Medicaid program in ways that result in higher federal payments to Michigan’s medical welfare establishment. The bill would retain more of the proceeds in state coffers rather than distribute them to providers through Medicaid contracts and reimbursements.

Referred to the Committee on Appropriations

May 19, 2016

Reported without amendment

With the recommendation that the bill pass.

May 25, 2016

Passed in the Senate 35 to 2 (details)

Received in the House

May 25, 2016

Referred to the Committee on Appropriations

June 7, 2016

Reported without amendment

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

June 8, 2016

Substitute offered by Rep. Al Pscholka (R-79)

To adopt a version of the bill that incorporates a broader overhaul of the levies used to extract these higher federal Medicaid payments, so as to reflect ongoing changes in relevant federal laws and rules.

The substitute passed by voice vote

June 9, 2016

Passed in the House 106 to 3 (details)

To revise a tax the state imposes on health care providers so as to “game” the federal Medicaid program in ways that result in higher federal payments to Michigan’s medical welfare establishment. The bill would retain more of the proceeds in state coffers rather than distribute them to providers through Medicaid contracts and reimbursements. See also Senate Bills 987 to 990.

Received in the Senate

June 9, 2016

Passed in the Senate 35 to 2 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

June 20, 2016