Snyder Vetoes Health Insurance Tax Changes

Governor Rick Snyder has vetoed legislation that would have changed how health insurers are taxed and Medicaid is funded.

He says the bills were rejected because he was “very concerned” that the federal government would not recognize the tax structure, putting at risk federal matching funds and “leaving our state budget out of balance.”

The veto comes a week after the Republican-led Senate voted overwhelmingly to continue a six-percent “use” tax on Medicaid managed care organizations.

Snyder says he looks forward to continued discussions with lawmakers.