Governor’s budget again proposes physician tax to help fund MDCH budget
Mar 9th, 2010 | By Ryan Knott | Category: Capitol Corner
Gov. Jennifer Granholm led the presentation of the Executive Budget recommendations to the Michigan Senate and House Appropriations Committees for FY 2010-2011. Details indicate the budget will again this year show significant reductions in state funded programs. With the ongoing economic decline in Michigan, the budget is at least $1.6 billion short of what is needed to maintain the present level of state programs. To compensate for this shortfall, the governor proposed a series of tax cuts, increases and program reductions to bring spending in line with anticipated revenues for the year.
The budget for the Michigan Department of Community Health (MDCH) did not escape further cuts in programs. Included in the proposed reductions were a 7.7-percent reduction in monies for local public health departments and the closure of the public health testing lab in the Upper Peninsula. These proposed cuts will obviously be very unpopular with the Legislature.
The governor also again proposed a 3-percent physicians tax or an additional 11-percent reduction to providers for Medicaid reimbursement if the physician tax is not approved. MOA joined with MSMS in immediately issuing a joint press release stating our continuing opposition to this approach to funding state health care programs. Both the proposed tax and potential 11-percent cut in provider payments are especially troubling at this time in our state. This kind of cut threatens the quality and availability of health care for some of the state’s most needy citizens.
Last year this same proposal was rammed through the House without allowing physicians groups a chance to testify in opposition. That development lead to approximately 1,000 physicians gathering at the Capitol steps to voice their strong opposition to the idea. The Michigan Senate defeated that version of the physician tax by a vote of 32 to 4.
MOA continues to speak out against the tax increase and the proposed additional cut in provider reimbursement. It is not clear what the future holds for either program, so please check the MOA website for later developments.
Legislation advances to make illegal the reuse of most single-use medical devices
A two-bill package — SB528 sponsored by Sen. Bill Hardiman (R-Kentwood) and HB5825 sponsored by Rep. Dian Slavens (D-Canton Township) — would prohibit the reuse of single-use medical devices, unless the device has been recycled pursuant to federal reprocessing regulations. The bills would apply to most regulated health professionals, including osteopathic medicine and surgery.
According to legislative testimony, a dermatologist was charged several years ago with insurance fraud and the resulting investigation discovered that the dermatologist was reusing several single-use medical devices, including gloves and needles. The discovery brought to light the fact that it was not specifically illegal to reuse such items. The bills would correct this deficiency.
If you have any questions on these or other legislative issues, please contact Fred Anderson or call 800.657.1556.
If the 3% cut in reimbursement is passed, and this applies not only to physician services (E and M codes) but also to drugs infused or injected in the office, with the Medicare reimbursement based upon ASP (average sales price) plus 6%, then I as a rheumatologist will not be able to care for patients in my office who need infusion treatments. And realistically as a solo practitioner I can not purchase in bulk therefore pay a higher amount for these drugs–essentially getting ASP plus 2-3%. I would need to send these patients to the hospital inconveniencing the patient, decreasing my ability to monitor the patient, and at an extremely higher cost since it’s given in the hospital. Even the proposed SGR cut by medicare of 21% excludes infusible drugs. And those physicians like myself nearing retirement age may be forced to close our practices. I am born and raised in Michigan, have been in Warren for the past 32 years (29 in the same office), past chairman of the board of the Michigan Chapter of the Arthritis Foundation, and current president of the Michigan Rheumatism Society. These are tough times for all and I can appreciate the gravity of the economic climate, but to tax us in this way significantly limits patients’ access to needed treatment.