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| TAX OUTLINE |
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| TAX DESCRIPTIONS |
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| QUALITY ASSURANCE ASSESSMENT FEES |
LEGAL CITATION: |
M.C.L. 333.20161, M.C.L. 500.224b, M.C.L. 400.109f; 2002 PA 303, 304, & 562; 2005 PA 83 |
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| YEAR ADOPTED: |
2002 (Nursing and Long-term Care Facilities, Hospitals, and Health Maintenance Organizations) and 2005 (Community Mental Health Plans). |
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| BASIS OF TAX: |
Privilege of participating in the Medicaid program. |
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| MEASURE OF TAX (BASE): |
Assessments are charged by the State on hospitals, nursing and long-term care facilities and health maintenance organizations (HMO) that have managed care contracts with the State, and Community Mental Health Plans. The resulting revenue collections, combined with federal matching revenues, are used to increase the rates paid by the State to these providers of services to patients participating in the Medicaid program.
The tax base varies by type of provider. For hospitals, the number of licensed beds is assessed a uniform charge per bed. For nursing and hospital long-term care units, the total number of patient days of care each nursing and long-term care unit provided to non-Medicare patients during the preceding year. For HMOs, the assessment is based on the non-Medicare premiums collected by the HMO. For Community Mental Health plans, the assessment is based on the non-Medicare capitation payments collected by the plan. |
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| RATE: |
The rates for the three types of providers are as follows:
- For nursing and hospital long-term care units, an amount resulting in not more than 6% of total industry revenues.
- For hospitals, a fixed or variable rate that generates funds not more than the maximum allowable under federal matching requirements.
- For HMOs having Medicaid managed care contracts, 6% of non-Medicare premiums collected by the HMO.
For Community Mental Health plans, 6% of non-Medicare capitation payments collected by the plan.
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| ADMINISTRATION: |
Department of Community Health. |
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| REPORT AND PAYMENT: |
The Department of Community Health sends each provider a statement of the amounts owed for the particular assessment. Payments received are deposited in the State Treasury. |
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| DISPOSITION: |
The assessment revenues are appropriated as a part of the financing of the Medicaid program and are restricted for that purpose. |
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| 2004-05 COLLECTIONS: |
$___,___,000 |
Last Updated January 24, 2007
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