2006 Senate Bill 1467

Eliminate sunset on Medicaid "bed tax"

Introduced in the Senate

Sept. 20, 2006

Introduced by Sen. Deborah Cherry (D-26)

To eliminate the sunset on the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) tax on nursing homes and hospital long-term care units, and earmark $66.4 million of this revenue to Medicaid each year. 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 Health Policy

Nov. 9, 2006

Referred to the Committee on Appropriations

Nov. 28, 2006

Reported without amendment

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

Nov. 29, 2006

Substitute offered

To replace the previous version of the bill with one that extends the tax for another year, not indefinitely.

The substitute passed by voice vote

Nov. 30, 2006

Passed in the Senate 35 to 0 (details)

To extend for another year the “Michigan Medicaid Quality Assurance Assessment” (MMQAA) tax on nursing homes and hospital long-term care units, and earmark $66.4 million of this revenue to Medicaid in 2007 and 2008. 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. The bill also reflects a 1 percent increase in the tax rate on hospitals, taking approximately $150 million more from them, and retaining a larger amount of this rather than redistributing to hospitals based on their Medicaid caseload.

Received in the House

Nov. 30, 2006

Referred to the Committee on Appropriations

Dec. 5, 2006

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 15, 2006

Amendment offered by Rep. Bruce Caswell (R-58)

The amendment passed by voice vote