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Proposed doctors' tax sparks debate in Michigan

Associated Press - October 20, 2009 5:14 PM ET

LANSING, Mich. (AP) - Debate continues over whether Michigan should put a 3% tax on doctors' gross receipts to raise more money for low-income health care programs.

Groups on both sides of the proposal took their case to the state Capitol on Tuesday.

Opponents, including the Michigan State Medical Society, say the tax would drive doctors out of the state and reduce access to health care.

Supporters, including some doctors, say the tax would give physicians who see Medicaid patients higher reimbursement rates instead of the 8% cut contained in Michigan's current budget plan.

The tax could raise about $300 million annually and make the state eligible for more than $800 million in federal Medicaid revenue.

The proposal has passed the Democratic-run House and was the subject of a Tuesday hearing in the Republican-led Senate.

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