HB 5386 - Physician Services Tax - Michigan Key Vote

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Title: Physician Services Tax

Vote Smart's Synopsis:

Vote to pass a bill that establishes a quality assurance tax on physicians or physician related entities equal to 3 percent of their gross revenue, provided that the revenue from the tax qualifies for federal matching funds for the purpose of increasing Medicaid physician services reimbursement rates.

Highlights:

-Requires the Department of Community Health to cease imposing the tax if the revenue from the tax no longer qualifies for federal matching funds (Sec. 16302). -Requires the Department of Community Health to increase Medicaid physician services reimbursement rates beginning in fiscal year 2009-2010, and for each fiscal year thereafter, the Department is required to maintain the increase (Sec. 16302). -Requires an amount equal to 13.2 percent of the federal funds generated by the tax to be appropriated to the Department of Community Health to support Medicaid expenditures for physician services beginning in fiscal year 2009-2010, and requires an equivalent amount of state funds originally appropriated for this purpose to be deposited into the Michigan Health Care Rebate Fund established by this Act for the purpose of appropriating funds for Medicaid provider rates, non-Medicaid community mental health programs, Healthy Michigan Fund's pediatric and dental services program, or any combination thereof for fiscal year 2009-2010 (Sec. 16302). -Expands the authorization for the appropriation of funds from the Health Michigan Fund to include all Department of Community Health programs beginning in fiscal year 2010-2011 (Sec. 16302). -Authorizes the Department of Community Health to impose a penalty on physicians or physician related entities for failing to file quarterly or annual statements or pay the tax equal to 5 percent of the tax for each month that the tax and penalty are not paid, provided that it does not exceed 50 percent of the tax (Sec. 16302). -This is a substitute bill sponsored by Rep. George Cushingberry.

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

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