Physicians square off on QAAP

Two groups of Michigan physicians are locked in disagreement over a proposed bill that would place a 3 percent tax on the income of doctors in order to qualify for federal matching funds and increase funding for Medicaid. The bill has already passed the state House but is still pending in the Senate.

The 3 percent tax would raise approximately $300 million to establish a Quality Assurance Assessment Program, which would then bring in $522 million in federal matching funds. This would raise reimbursement rates to doctors who treat patients on Medicaid to match the reimbursement rates paid by Medicare.

In Lansing on Tuesday, a group of doctors from the Michigan State Medical Society held a rally to protest the proposed tax and urge the Senate to reject the bill. They argued that the tax will hurt them financially and drive doctors out of the state.

Another doctor’s group, the Michigan College of Emergency Physicians, put out a press release at the same time lauding the program as both necessary and equitable. That press release noted that all doctors who derive 4 percent of their income from Medicaid would break even on the program and those who do more Medicaid business would profit from the new tax because of the boost in reimbursement rates.

The press release also said that 1.7 million Michigan residents rely on Medicaid as their primary source of medical care and those numbers will likely increase as unemployment continues to grow in the state. Noting that Medicaid rates were already 76% lower than Medicare rates, the group said, “Physicians who treat Medicaid patients can no longer bear the burden alone…It would ensure that the whole physician community helps care for Michigan’s poorest citizens. Currently, too few physicians are carrying the load by themselves.

The Senate is expected to take up the bill soon, but it is not expected to pass.