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Review
. 2013 Oct;9(3):257-63.
doi: 10.1007/s11420-013-9348-6. Epub 2013 Aug 29.

Is a Physician "Provider Tax" the Solution to Michigan's Medicaid Woes?

David C Markel  1 , Peter J Sauer  2 , Ralph B Blasier  3
Affiliations
Review

Is a Physician "Provider Tax" the Solution to Michigan's Medicaid Woes?

David C Markel et al. HSS J. 2013 Oct.

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.

Keywords: Affordable Care Act; Medicaid; Michigan; physician tax.

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