Governor Vetoes Health Insurance Tax Repeal Bills

Liz Gullett

Oct 28, 2016

On Thursday, Governor Rick Snyder vetoed a package of legislation repealing the Health Insurance Claims Assessment (HICA). The tax was originally enacted to help pay the state’s portion of Medicaid, but revenue from HICA never reached the projected levels and there were questions as it whether the Federal Government would approve of the program as a funding source for state match dollars.

The legislature gave their final approval to the replacement package last week, seeking to find a new funding source for the program. However, the State Budget office expressed concerns over the legislation and its ability to fully fund the state match dollars for Medicaid. In his veto letter, the Governor voiced concerns over the potential budget shortfalls and if the state would get the necessary federal approval of the replacement program. “While the Governor and Legislature may not have agreed on this proposal, they will continue to work together to find a solution to fund Michigan’s portion of Medicaid,” stated Tim Ward of MLC.

To read the Governor’s veto letter, please click here.

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