Revenue Sources for the Medicaid Program

Year: 2005

Resolution Number: 97

Action Taken: Approved as Amended

Status:

Author(s): Lawrence A. Reynolds, MD

Sponsor: Lawrence A. Reynolds, MD, Genesee County

On behalf of:

Committee: B (Legislation)

Resolved Section(s):
RESOLVED: That MSMS continue to oppose the provider tax and support an alternative proposal that increases the revenues available to the Medicaid program such as a broader based tax.RATIONALE: It was the overwhelming sentiment of the testimony heard by the Committee that a provider tax on physicians is not fair and unlikely to be a long-term solution to the variety of problems facing the Medicaid program. Representatives from the Michigan Department of Community Health were in attendance at the Reference Committee to provide their intention to work with MSMS to create a tax on physicians that would provide increased fees paid by Medicaid. The Committee heard testimony that the track record of Medicaid in paying claims is very poor, and therefore, sending additional money to the state of Michigan in the form of a provider tax will likely never be recuperated by the physicians in higher fees. However, the physicians testifying before the Committee were aware of the severity of the funding shortfall within the Medicaid program and prefer a more broad based solution that relies on revenues from society as a whole and not solely on the medical profession.

Fiscal Note: NULL