Tobacco Use

Michigan to cut provider rates by 22% without cigarette tax

Published in Cancer Weekly, July 6th, 2004

The state will reduce its payments to health care providers who take care of low-income Medicaid recipients by 22% if the state Legislature doesn't approve a 75-cent cigarette tax increase for July 1, Governor Jennifer Granholm said June 15, 2004.

The reduction would resolve a $107 million shortfall in this year's Medicaid budget, said T.J. Bucholz, spokesman for the state Department of Community Health.

He said the cut is needed to balance the Medicaid budget after the House and Senate approved transferring $50 million from the state's general fund to the school aid fund to balance that budget and prevent schools from facing a state funding drop of...

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Source: Cancer Weekly (2004-07-06)

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