Bill continues Michigan health insurance tax until 2025 - WNEM TV 5

Bill continues Michigan health insurance tax until 2025

Posted: Updated:
LANSING, Mich. (AP) -

Michigan's tax on health insurance would be continued until 2025 under legislation scheduled for a vote in the Legislature.

The Senate plans to vote Tuesday on extending the 0.75 percent health insurance claims assessment, which helps pay for Medicaid coverage for low-income residents. The tax will go away in two years if legislation is not enacted.

The Michigan Chamber of Commerce calls the bill a "giant tax hike" to pay for "social welfare programs." But supporters say the measure already approved by the House gives certainty to businesses and funds vital health insurance for the poor.

If the tax is not extended, Medicaid spending could be cut by roughly $1 billion annually starting in the 2017-18 budget year unless another source of funding is used.

Copyright 2015 Associated Press. All rights reserved.

Powered by Frankly
WNEM
Powered by WorldNow CNN
All content © 2017, WNEM; Saginaw, MI. (A Meredith Corporation Station) . All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.