Michigan Gov. Jennifer Granholm is expected to include a 3 percent tax on physicians’ gross receipts as part of her budget proposal to the state legislature, the Detroit Free Press reports.
The tax on physicians’ gross receipts could generate as much as $700 million thanks to matching federal Medicaid grants.
The tax on doctors was approved by the Michigan House last year but was defeated in the Senate. For doctors with Medicaid patients making up more than 4 percent of their practice, the tax would likely be offset by higher Medicaid reimbursements, according to the Free Press.
Read the Detroit Free Press coverage of the physician tax.
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