Snyder vetoes Medicaid tax change, cites budget implications

Gov. Rick Snyder in Grand Rapids on Feb. 2, 2015.
Gov. Rick Snyder in Grand Rapids on Feb. 2, 2015.

LANSING, Mich. (AP) — Gov. Rick Snyder has vetoed legislation that would have changed how health insurers are taxed and Medicaid is funded.

Snyder said Thursday he rejected the bills 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 6 percent “use” tax on Medicaid managed care organizations, more quickly end a broader health insurance tax that the business lobby dislikes and change the pot of state money that is used to draw federal matching dollars.

Snyder says he looks forward to continued discussions with lawmakers.