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Gov. Snyder Okays Bill To Repeal, Replace Tax That Funds Medicaid

Rick Snyder
WKAR-MSU
Gov. Rick Snyder (R) Michigan

Gov. Rick Snyder has signed into law a plan to repeal and replace Michigan's tax on health insurance claims that is used to help fund Medicaid for low-income residents.

The laws enacted Monday require the state to seek a federal waiver to implement the tax change. The waiver is expected to be approved.

Under the legislation, Michigan would repeal the 1 percent Health Insurance Claims Assessment and create the Insurance Provider Assessment, a new tax.

The Michigan Manufacturers Association says the laws could lead to more than $300 million in annual savings for businesses.

The tax would be assessed on Medicaid managed care organizations, Medicaid prepaid inpatient health plans and commercial insurance.

The laws would boost state resources by more than $440 million annually by early next decade.

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