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2011 Senate Bill 348: Revise medical services taxes to get more federal Medicaid money

Public Act 142

Signed by Gov. Rick Snyder on February 20, 2011
Introduced by Sen. Roger Kahn (R) on April 27, 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 creates the new tax.   Official Text and Analysis.
Referred to the Senate Appropriations Committee on April 27, 2011
Motion by Sen. Arlan Meekhof (R) on June 29, 2011 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 in the Senate on June 29, 2011
Substitute offered in the Senate on June 29, 2011 To replace the previous version of the bill with one that caps at $400 million the total annual amount of revenue the new tax would be allowed to extract.
The substitute passed by voice vote in the Senate on June 29, 2011
Amendment offered by Sen. Bert Johnson (D) on June 30, 2011 To require the state to post information on a website on the "compliance, effectiveness, and efficiency" of health insurance providers.
The amendment passed by voice vote in the Senate on June 30, 2011
Amendment offered by Sen. Glenn Anderson (D) on June 30, 2011 To appropriate $5.9 million from the proposed tax to a "Healthy Michigan Fund," undoing a cut of that amount to this program adopted as part of the 2012 budget.
The amendment failed 17 to 21 in the Senate on June 30, 2011
Amendment offered by Sen. Steve Bieda (D) on June 30, 2011 To exempt school district employee health insurance from the claims tax.
The amendment failed 19 to 19 in the Senate on June 30, 2011
Amendment offered by Sen. Steve Bieda (D) on June 30, 2011 To revise details of the tax as applied to self-funded group insurance claims.
The amendment failed 19 to 19 in the Senate on June 30, 2011
Amendment offered by Sen. John Gleason (D) on June 30, 2011 To appropriate $31.8 million from the proposed tax to a graduate medical education subsidy program defunded in the 2012 budget.
The amendment failed 15 to 23 in the Senate on June 30, 2011
Amendment offered by Sen. Bert Johnson (D) on June 30, 2011 To exempt supplementary Medicare plans from the tax.
The amendment failed 17 to 21 in the Senate on June 30, 2011
Amendment offered by Sen. Tonya Schuitmaker (R) on June 30, 2011 To authorize a credit against the proposed tax in the amount of insurance company premium taxes paid on group disability and dental insurance policies.
The amendment failed by voice vote in the Senate on June 30, 2011
Amendment offered by Sen. Tupac Hunter (D) on June 30, 2011 To state explicitly that the proposed tax is in fact a tax and not an "assessment".
The amendment failed 15 to 22 in the Senate on June 30, 2011
Passed 26 to 9 in the Senate on June 30, 2011 (same description)
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 creates the new tax.
Received in the House on June 30, 2011
Referred to the House Appropriations Committee on June 30, 2011
Reported in the House on August 24, 2011 With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on August 24, 2011 To replace the previous version of the bill with one that revises various details, but does was superseded by another substitute with more changes (see Moss substitute).
The substitute passed by voice vote in the House on August 24, 2011
Substitute offered by Rep. Chuck Moss (R) on August 24, 2011 To replace the previous version of the bill with one that exempts federal medical social welfare program claims, and tightens the cap on the amount of revenue the revenue the tax could collect.
The substitute passed by voice vote in the House on August 24, 2011
Amendment offered by Rep. Lisa Brown (D) on August 24, 2011 To exempt health insurance provided to local government and public school employees from the tax.
The amendment failed 43 to 64 in the House on August 24, 2011
Amendment offered by Rep. Richard LeBlanc (D) on August 24, 2011 To label the tax a tax instead of an "assessment".
The amendment failed by voice vote in the House on August 24, 2011
Amendment offered by Rep. Aric Nesbitt (R) on August 24, 2011 To exempt group disability and dental insurance policy claims from the tax (by means of a tax credit to the insurer).
The amendment failed by voice vote in the House on August 24, 2011
Amendment offered by Rep. Kate Segal (D) on August 24, 2011 To strip-out a $1 million appropriation to set up the tax collection apparatus, and an annual earmark of 1 percent of the revenue it collects to pay for its administration.
The amendment failed by voice vote in the House on August 24, 2011
Passed 65 to 42 in the House on August 24, 2011 (same description)
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 creates the new tax.
Received in the Senate on August 24, 2011 To concur with the House-passed version of the bill.
Passed 31 to 7 in the Senate on August 24, 2011

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