LANSING, Mich. (AP) – Michigan’s tax on health insurance would continue into 2020 under legislation narrowly approved by the state Senate. The Republican-controlled chamber voted 21-17 Wednesday to extend the health insurance claims assessment, which helps pay for Medicaid for low-income residents. The tax goes away in two years if the bill isn’t enacted. The Michigan Chamber of Commerce has called it a “giant tax hike.” If the tax isn’t extended, Medicaid spending could be cut starting in 2017-18 unless another source of funding is used. The Senate changed a House version of the bill and voted to continue the tax until 2020 instead of 2025. The legislation goes back to the House. The 0.75 percent tax will rise to 1 percent when the federal government no longer allows another tax to fund Medicaid.
