HICA Extension Clears House, Heads To Governor

The Michigan Senate and House Wednesday gave the green light to a bill extending a tax 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, R-Stevensville, who’s sponsoring the bill, says extending the tax – at the same rate – can’t be an increase.

He says it should give businesses some solace to know 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.

The measure now goes to the governor for his signature.