David C Markel1, Peter J Sauer2, Ralph B Blasier3. 1. The CORE Institute, Detroit Medical Center/Providence Hospital Orthopaedic Surgery Residency Program, Providence Hospital and Medical Centers, 22250 Providence Drive, Suite #401, Southfield, MI 48075 USA. 2. Cooley LLP, Palo Alto, CA 94304 USA. 3. Orthopaedic Surgery, OSF St Francis Hospital and Medical Group, Escanaba, MI 49829 USA.
Abstract
BACKGROUND: Michigan is facing a Medicaid budget shortfall. Evidence suggests that the underlying factors causing reliance on Medicaid and cost of treatment to increase are getting worse. A tax on Michigan physicians has been proposed by legislators to meet the budget demands of Michigan's Medicaid program. QUESTIONS/PURPOSES: This paper looks at the legal basis of such a tax, studies the successes and failures of other states that have implemented similar taxes, and attempts to assess the effect this tax would have on Michigan doctors and patients. CONCLUSION: With current Medicaid rules, such a tax would increase federal matching funds and potentially reimbursement rates. However, the cost of a tax on physicians would not be born equally, and there are no guarantees that the revenue would provide a funding solution.
BACKGROUND: Michigan is facing a Medicaid budget shortfall. Evidence suggests that the underlying factors causing reliance on Medicaid and cost of treatment to increase are getting worse. A tax on Michigan physicians has been proposed by legislators to meet the budget demands of Michigan's Medicaid program. QUESTIONS/PURPOSES: This paper looks at the legal basis of such a tax, studies the successes and failures of other states that have implemented similar taxes, and attempts to assess the effect this tax would have on Michigan doctors and patients. CONCLUSION: With current Medicaid rules, such a tax would increase federal matching funds and potentially reimbursement rates. However, the cost of a tax on physicians would not be born equally, and there are no guarantees that the revenue would provide a funding solution.
Entities:
Keywords:
Affordable Care Act; Medicaid; Michigan; physician tax