Michigan Gov. Rick Snyder signed new laws yesterday that will impose a 1 percent tax on all healthcare claims paid in the state, according to a CivSourceOnline report.
The law will put the tax money toward healthcare for low-income residents. A second bill makes the state eligible for $780 million in additional federal funding to pay for healthcare for low-income residents.
Gov. Snyder worked with state lawmakers on the measures and agreed to use them as part of the effort to balance the state's overall budget, according to the report. The state also ended a 6 percent use tax on Medicaid managed care organizations.
The 1 percent tax will go into effect on Jan. 1. Some plans, such as Medicare Advantage and Medicare prescription drug plans, will be exempted from the tax, as will co-payments.
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The law will put the tax money toward healthcare for low-income residents. A second bill makes the state eligible for $780 million in additional federal funding to pay for healthcare for low-income residents.
Gov. Snyder worked with state lawmakers on the measures and agreed to use them as part of the effort to balance the state's overall budget, according to the report. The state also ended a 6 percent use tax on Medicaid managed care organizations.
The 1 percent tax will go into effect on Jan. 1. Some plans, such as Medicare Advantage and Medicare prescription drug plans, will be exempted from the tax, as will co-payments.
Related Articles on Coding, Billing and Collections:
OIG: Ambulatory Surgery Centers, HOPDs Frequently Report Wrong Place of Service Codes
TeamHealth Expansion to Create Hundreds of Medical Coding and Billing Jobs
Providers Could Save Time, Money by Implementing ICD-10 and Meaningful Use Together