Ducker Worldwide in the News: Snyder signs bill ensuring state will get $780M in Medicaid funding
Sep 21, 2011
The Detroit News
Gov. Rick Snyder signed legislation Tuesday that he says ensures the state will receive more than $780 million of federal funding to make sure medical treatment is available to low-income residents.
The legislation — part of the budget deal negotiated with state legislators earlier this year to balance the 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 spending by individuals, such as co-payments and deductibles, will not be taxed.
Troy health care consultant Fred Brown of Ducker Worldwide said in June he expects consumers will see their health insurance rates rise 1 percent in the next year because of the tax. The proposal also faced opposition from the Michigan Manufacturers Association, which argued the tax might cost some members more than $1 million a year and hamper plans to hire workers.