2005 House Bill 5055 / Public Act 187

Extend sunset on hospital MMQAA

Introduced in the House

July 13, 2005

Introduced by Rep. Bruce Caswell (R-58)

To extend for one year the October 1, 2007 sunset on the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) tax on nursing homes and hospital long-term care units; include governmentally owned nursing homes in the assessment; and increase hospitals’ allocation of the revenue the fees generate. The MMQAA is a bed tax or fee on health care providers that is used to generate more federal Medicaid matching funds, resulting in a net gain for some but not all of the providers.

Referred to the Committee on Appropriations

Aug. 31, 2005

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Passed in the House 107 to 0 (details)

To extend for one year the October 1, 2007 sunset on the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) tax on nursing homes and hospital long-term care units; to include governmentally owned nursing homes in the assessment; and to revise the allocation of the revenue the tax generates. The MMQAA is a bed tax on health care providers that is used to generate more federal Medicaid matching funds, resulting in a net gain for some but not all of the providers.

Received in the Senate

Sept. 6, 2005

Referred to the Committee on Appropriations

Oct. 11, 2005

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that also would change the nursing home MMQAA from a bed tax to a tax on non-Medicare bed days, and authorizes seeking a federal "waiver" allowing Michigan to levy a two-tiered nursing home tax and to exempt "continuing care retirement centers" from the tax.

The substitute passed by voice vote

Oct. 12, 2005

Passed in the Senate 36 to 0 (details)

To extend for one year the October 1, 2007 sunset on the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) tax on nursing homes and hospital long-term care units; to include governmentally owned nursing homes in the assessment; to change the nursing home MMQAA from a bed tax to a tax on non-Medicare bed days; to revise the allocation of the revenue the tax generates; and to seek federal permission to levy a two-tiered nursing home tax and to exempt "continuing care retirement centers" from the tax. The MMQAA is a bed tax on health care providers that is used to generate more federal Medicaid matching funds, resulting in a net gain for some but not all of the providers.

Received in the House

Oct. 12, 2005

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

Passed in the House 106 to 0 (details)

Signed by Gov. Jennifer Granholm

Oct. 27, 2005