After failing to obtain the necessary votes late Wednesday, the State Senate was successful in passing SB 348 Thursday morning, providing for a 1-percent health insurance claims tax. The measure is expected to raise approximately $400 million and leverage an additional $800 million in federal matching dollars and is viewed as a key component in balancing the 2011-2012 Medicaid budget.
On Wednesday, the Senate began action on the measure by attempting to pass a companion bill, SB 347, however, passed it for the day and tabled debate when the final tally only reach 19-13. Only one Democrat joined 18 Republican members of the Senate in casting yes votes, Senator Vincent Gregory (D-Southfield). Eight Republicans voted no while six Democratic members abstained.