2011 Senate Bill 347 / Public Act 141

Revise medical services taxes to get more federal Medicaid money

Signed by Gov. Rick Snyder

Feb. 20, 2011

Introduced in the Senate

April 27, 2011

Introduced by Sen. Roger Kahn (R-32)

To repeal a 6 percent use tax on medical services health care providers, and replace it with a 1 percent tax on health insurance claims. These taxes are designed to “game” the federal Medicaid system in ways that result in higher federal payments to Michigan’s medical welfare system. This bill is the repealer, and Senate Bill 348 creates the new tax.

Referred to the Committee on Appropriations

June 29, 2011

Motion

To discharge the Committee on Appropriations from further consideration of the bill, and move it directly to the full Senate for a vote.

The motion passed 24 to 14 (details)

Failed in the Senate 19 to 13 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

To reconsider the vote by which the bill was defeated.

The motion passed by voice vote

Received in the House

June 30, 2011

Referred to the Committee on Appropriations

Received in the Senate

June 30, 2011

To repeal a 6 percent use tax on medical services health care providers, and replace it with a 1 percent tax on health insurance claims. These taxes are designed to “game” the federal Medicaid system in ways that result in higher federal payments to Michigan’s medical welfare system. This bill is the repealer, and Senate Bill 348 creates the new tax.

Passed in the Senate 24 to 9 (details)

In the House

Aug. 24, 2011

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Passed in the House 65 to 42 (details)

To repeal a 6 percent use tax on medical services health care providers, and replace it with a 1 percent tax on health insurance claims. These taxes are designed to “game” the federal Medicaid system in ways that result in higher federal payments to Michigan’s medical welfare system. This bill is the repealer, and Senate Bill 348 creates the new tax.

In the Senate

Aug. 24, 2011

Motion

To give the bill be given immediate effect.

The motion passed 32 to 2 (details)

Sept. 7, 2011

Received

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

Passed in the Senate 28 to 9 (details)

Received in the House

Sept. 7, 2011

Substitute offered

To clarify when the new tax will kick-in.

The substitute passed by voice vote

Passed in the House 66 to 42 (details)

To pass the bill again with a clarification of when the new tax will kick-in.