Health Insurance Tax Bill Signed

Governor Rick Snyder has signed a bill extending a tax on businesses who offer healthcare to their employees until through 2020.

The money collected from the Health Insurance Claims Assessment helps pay for Medicaid.

Opponents of the extension call it a tax increase on both businesses and individuals.

But backers of the legislation say extending the tax – at the same rate – can’t be an increase, and also note that the tax won’t go up for another five years.

All of the money collected won’t cover all of the state’s Medicaid expenses but will keep it from blowing a hole in the state budget.