Michigan Extends Insurer Tax to Preserve Medicaid Funding

The state of Michigan recently passed legislation to extend its Insurance Provider Assessment tax, which generates about $630 million annually and supports roughly $1.75 billion in federal matching funds for the state’s Medicaid program, reports Becker’s Payer Issues. The plan calls for seeking a waiver from Centers for Medicare & Medicaid Services to maintain current tax rates. If the waiver is altered or denied, the state will propose a new tax structure in compliance with updated federal rules.