Posted on 06/16/2004 5:59:30 AM PDT by wmichgrad
LANSING -- Michigan's schools have been saved from a scheduled $54 million cut, but health care providers are next up on the state budget chopping block.
Gov. Jennifer Granholm Tuesday ordered state Medicaid administrators to begin preparing 22 percent cuts in reimbursement rates for care provided to the state's poor, elderly and disabled in the last two months of the 2004 fiscal year. The cuts, effective Aug. 1, would apply to payments made to physicians, nursing homes and hospitals.
Granholm said the cuts are unavoidable unless lawmakers quickly approve her proposed tax hike on cigarettes to $2 per pack, as well as price hikes on state-sold distilled spirits.
About half the money collected from increasing those taxes on July 1 was to go to K-12 schools. The school aid fund is short of money given lackluster sales tax collections, so Granholm had ordered a $28-per-student cut.
The House Tuesday approved a Senate-passed measure, which Granholm will sign, that simply fills the school budget hole with money from other state budget accounts. That means schools will see no reduction in their July state aid payment.
Overall, however, the 2004 state budget remains about $250 million in the red. About $107 million of that problem is in Medicaid, which provides health care to more than one-in-eight Michigan residents.
"Clearly we need to have a cigarette tax passed. Clearly it must be effective July 1," Granholm said. "Clearly any delays in the tax will result in cuts to the Medicaid system."
She had set Tuesday as the deadline for approving the cigarette tax hike, to allow time for gearing up administratively for the July 1 enactment.
The cigarette tax is sitting in the Senate, where Majority Leader Ken Sikkema, R-Wyoming, said passage depends on an overall budget agreement.
"We're not going to solve the cigarette tax issue or the budget issue without a little give-and-take," Sikkema said.
Republicans are pressing Granholm to agree to a series of business tax cuts that GOP lawmakers say are critical to boosting the state's economy, and thus the state's long-term fiscal fortunes.
Granholm's short-term concern with the cigarette tax is that as passed by the House, it generates about $34 million less in 2004 than what she proposed. She opposes House amendments that exempt smokeless tobacco and cigars from the tax increase, which are worth about $4 million.
She also opposes a grace period that allows wholesalers to keep the first two weeks of tax collections to compensate for lower sales, which would cost the state an estimated $30 million.
Absent quick agreement on the budget, health care groups say the Aug. 1 payment cuts would prompt more doctors to curtail their Medicaid practices.
"There really isn't a financial reason for doctors to treat Medicaid patients," said Colin Ford, a lobbyist for the Michigan State Medical Society. "By reducing rates further, the fear is that physicians would have to make a very tough choice."
Contact Peter Luke at (517) 487-8888 or e-mail him at pluke@boothnewspapers.com.
"Clearly we need to have a cigarette tax passed. Clearly it must be effective July 1," Granholm said. "Clearly any delays in the tax will result in cuts to the Medicaid system."
Now that she can't use education funding, Jennifer "Dumbo" Granholm is trying to use Medicaid to blackmail new "sin" taxes through. What about cutting overhead?
Smoking is bad for your health and we must tax cigarettes to discourage people from smoking and costing the state money, but we need the money to fund state healthcare budgets treating the people in poor health so SMOKE 'EM IF YA GOT THEM!
Looks like the democrats are following lock step in their new party leader! Flippity Flop, Floppity Flip!
Yes there is. Its called charity. When I was a kid, my family doctor had patients who didn't pay full rates. As an adult, i have some needy clients who I don't charge full rates and even some done free.
Clearly Granholme is a tax and spend a$$hole.
Why is it that any budget shortfall MUST be made up for by 20% of the public?
If ALL the public use the amenities ALL the public should be taxed to pay for it.
This is becoming such blatant social engineering that those who don't see it should be made to retake the eye exam if they have a drivers license.
"We're not going to solve the cigarette tax issue or the budget issue without a little give-and-take," Sikkema said.
I am sick and tired of the state's spewing that smokers have to quit. I am sick to death of the states balancing their budgets on the backs of 25-30% of people who choose to smoke a legal product.
This will just drive more smokers to buy elsewhere! Or they can roll their on and save TON'S of money!
These idiot lawmakers still think we are blind folded out here!
Indian Reservations and the internet, but in new york you must remember to claim all those purchases on your taxes!
They did this in New York too.
They spent all the tobacco settlement money on pork projects to buy votes.
In Niagara Falls they planted new grass at a golf course.
The fact that 1 in 8 Michigan residents is on Medicaid I find astonishing.I'll bet 1/2 of them are of working age and have "back problems" and can't work,poor things.
I think their system needs correcting before more money is poured into the bottomless pit.
Welcome to the welfare state and let the smokers pay for it.
Yo, Granholm.............kiss my................
Hey governor, Socialism doesn't work! Cut the give away programs!
That's all well and good......it's your choice. these doctors are given NO choice.
What is it with you and your desire for more and more government control over private business practices? I'm sure you would be the first one screaming if the government came in and forced you to take on clients who couldn't pay you.
Well, I go to my local Smoke Shop and buy the bags of tobacco for $5.85 and a box of filtered tubes (200) for $1.99 and have a beautiful carton for under $8.00.
Perfectly legal and a heck of a lot cheaper then buying Big T's products.
Here's another tidbit about Michigan: there was a documentary on FNC over a month ago about the Muslim women flying to Detroit when they were almost due to have a baby.
They would stay with family members in Detroit or the surrounding area (that huge Mosque they have in Detroit), until time for the baby to be delivered. They go to the hospital, have their baby, and in a few weeks, fly back home. And they pay nothing. They have great health care and deliver their baby's and fly back home. All at the expense of the Michigan taxpayers.
And the lawmakers interviewed say "they have no idea how to stop this."
Are these women skipping out on the bills or is there some government benefit that was allowing them to do this?
It sounds like it to me. If anyone lives in or near Detroit, they should investigate this or call your Representative and find out how they manage to come over here and obtain free health care.
Someone has to pay for this, and you can bet we know who it is! I was shocked.
I forget if it was Michigan's Governor FNC was interviewing or one of the Senator's, but he bold faced said they had no idea how to stop this.
Don't forget that if they're born here they're automatically American citizens.
I think you misread. Doctors do have a choice whether to take medicaid patients or not. I'm certain some will be willing to take them at lower rates while others will refuse.
What you espouse is a system that doesn't let some doctors choose to offer discounted services to folks of their choosing. You are advocating higher taxes. I'm advocating let the medicaid be cut and let some doctors choose to offer and some to stop.
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