Snyder signs Medicaid claims tax

Sep 21, 2011

Governor Snyder has approved a one percent tax on health insurance claims to ensure that medical coverage for low-income families is not slashed by almost a billion dollars.

Everyone who files a claim for a treatment or a checkup will now pay the one percent tax. It will not apply to co-pays or deductibles.

It replaces a six percent tax on Medicaid HMOs. Michigan’s system for financing the Medicaid program for covering low-income families was on the cusp of being thrown out by federal authorities because it did not spread the burden wide enough.

Governor Snyder had a difficult time winning the votes for the health claims tax in the Republican-led Legislature. But he said he was committed to not rolling back health coverage for the poor during tough economic times. The Snyder administration has come under fire by human services advocates for rollbacks in other types of aid for low-income people, including new limits on cash assistance and food stamps.