Michigan's Proposed Physician Tax Increase

Michigan's Proposed Physician Tax Increase

UPDATE: October 29, 2009:

The Michigan Senate voted against House Bill 5386, thus rejecting the 3 percent physician tax increase.   

October 2009:  

The Michigan House-approved bill, House Bill 5386, could be passed by the Michigan Senate and thus approve a 3 percent physician tax. The tax, called "A Quality Assurance Assessment" would allegedly generate $300 million that would leverage an additional $525 million in federal Medicaid payments. This is because with every dollar Michigan raises, the federal government matches with another $2.72. The 3 percent tax increase is an alternative to a previously proposed plan to impose an 8 percent Medicaid rate cut on Medicaid providers. These alternatively proposed measures are designed to help close Michigan's $2.8 billion budget deficit.