September 21, 2011
LANSING, Mich. - Gov. Rick Snyder today signed legislation that ensures the state will receive more than $780 million of federal funding to ensure medical treatment is available to low-income residents.
The legislation, which was agreed to as a part of the deal with lawmakers to balance the state's budget, eliminates the existing 6 percent use tax on Medicaid managed care organizations and replaces it with a broad-based, 1 percent health care claims assessment.
Out-of-pocket expenditures by individuals, such as copayments and deductibles, will not be taxed.
"I'm proud we were able to preserve Medicaid funding at a time when the state is facing significant budget challenges," Snyder said. "The fact that we did not cut Medicaid funding shows that Michigan is committed to protecting our most vulnerable residents. This also brings Michigan in compliance with federal rules."
Senate Bills 347 and 348 are now Public Acts 141 and 142 of 2011.
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