Gov. Snyder signs law extending health insurance tax
Michigan's tax on health insurance will continue under legislation signed by Gov. Rick Snyder.
The bill enacted Tuesday extends the health insurance claims assessment, which helps pay for Medicaid for low-income residents, until July 2020.
The tax would have gone away in two years if the legislation were not adopted.
The 0.75 percent tax is expected to rise to 1 percent in 2017 when the federal government no longer allows another tax to fund Medicaid.
Critics such as the Michigan Chamber of Commerce call the bill a tax increase.
But the Republican governor has advocated for the measure partly as a way to lessen pressures in the state's general fund when more money is shifted to road construction in coming years.