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Gov. Snyder vetoes Senate Bills 987-990 to prevent the risk of losing federal Medicaid funding

Thursday, Oct. 27, 2016

LANSING. – Gov. Rick Snyder today vetoed Senate Bills 987-990, which would have reestablished the 6-percent use tax on the state’s Medicaid managed care organizations and accelerated the sunset on the Health Insurance Claims Assessment (HICA) from July 1, 2020 to Dec. 31, 2018.

“This legislation would sunset HICA 18 months earlier than the extension that just passed the Legislature earlier this year,” Snyder said. “I am 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 critical state health programs and leaving our state budget out of balance.”

In his official veto letter, Gov. Snyder says he supports finding a solution on Medicaid match requirements and that he looks forward to ongoing discussions with the Legislature on this topic.

Click here to view the veto letter.

For more information on this and other legislation, please visit