Michigan governor re-proposes physician tax

NEWS IN BRIEF — Posted Feb. 22, 2010

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Michigan Gov. Jennifer M. Granholm on Feb. 11 restated her support for a 3% tax on physicians' gross receipts as part of her fiscal 2011 budget proposal. The tax would raise about $300 million and draw hundreds of millions in additional federal Medicaid funds, some of which would be used to increase Medicaid physician pay.

But the Michigan State Medical Society opposes the proposed tax in part because the society is skeptical the money would be used to boost physicians' Medicaid pay, which currently stands at roughly 55% of Medicare rates, according to Colin Ford, MSMS director of state and federal government relations. Ford said the medical society remains skeptical even though the measure now explicitly pledges to raise doctors' Medicaid pay, while last years' proposal did not.

The Michigan House adopted that earlier proposal in October 2009, but the Senate rejected it later that month by a vote of 32-4.

Note: This item originally appeared at

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