October 27, 2016 2:44 p.m.

By David EggertAssociated Press

LANSING — Gov. Rick Snyder vetoed business-backed legislation Thursday that would have changed Medicaid taxes, the latest twist in wrangling even among Republicans over how to help fund the government health insurance program.The Republican governor’s move came a week after the GOP-led Senate voted overwhelmingly in support of bills that would have continued a 6 percent “use” tax on Medicaid managed care organizations, expedite the end of a health insurance tax disliked by the business lobby and change the pot of money the state uses to draw federal matching dollars.
Snyder questioned eliminating the health insurance claims tax at the end of 2018 instead of mid-2020 regardless of any potential action by the U.S. government.
“I am also very concerned that the federal government would not recognize this tax structure as an eligible Medicaid matching fund source, putting at risk federal funding for …
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Snyder vetoes Medicaid tax change, cites budget implications – Crain's Detroit Business