HICA Bill Moving Swiftly Through Legislature

The Michigan legislature is moving quickly to approve a bill extending a fee on businesses who offer healthcare to their employees.

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

Rich Studley, CEO of the Michigan Chamber of Commerce, opposes the measure.

He calls it a tax increase on both businesses and individuals.

But State Representative Al Pscholka, who’s sponsoring the bill, says extending the fee – at the same rate – can’t be a tax increase.

He says it should give businesses some solace to know the fee won’t go up for another ten 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.

The House passed the extension Tuesday and it cleared a Senate committee Wednesday.