Mich. health insurance tax to continue until 2020

A Michigan tax on health insurance will continue into 2020 under legislation signed Tuesday by state Gov. Rick Snyder, the latest in a string of moves to guarantee state funding for Medicaid programs, reports Crain's Detroit Business.


The tax, currently at 0.75 percent on each health insurance claim, is expected to rise to 1 percent in 2017, according to article. The tax generates several hundred million dollars a year to help fund Michigan's Medicaid programs. The tax would have otherwise expired in two years if new legislation were not adopted.


Michigan's health insurance claims tax isn't quite out of the woods yet, however. Earlier this month, the U.S. Court of Appeals for the Sixth Circuit was ordered to re-examine the state's Health Insurance Claims Assessment Act in light of the Supreme Court's recent ruling in Gobeille v. Liberty Mutual, which upheld the preemptive powers of the Employee Retirement Income Security Act.


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