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New ambulance tax approved by Mich. state senate

Proposed tax to raise no more than $20 million a year for Medicaid payments to ambulance providers

The Associated Press

LANSING, Mich. — Michigan would assess a new tax on ambulance services under a portion of a budget deal being approved by lawmakers.

The state Senate voted 32-6 Wednesday to allow the creation of an ambulance tax to raise no more than $20 million a year for the health budget.

The tax is similar to one already assessed on hospitals and long-term care facilities to help fund Medicaid health insurance for low-income residents. The ambulance tax would increase Medicaid payments toambulance providers.

The legislation sent back to the House also would boost licensing and inspection fees that hospitals, nursing homes, hospice agencies and others pay to the state.