By Associated Press - Tuesday, December 15, 2015

LANSING, Mich. (AP) - Michigan’s tax on health insurance would be continued until 2025 under a bill pending in the Legislature.

The Senate was expected to vote Tuesday on extending the 0.75 percent health insurance claims assessment, which helps pay for Medicaid for low-income residents. But a Republican spokeswoman says the Senate probably won’t vote Tuesday night.

The tax is scheduled to go away in two years.

The Michigan Chamber of Commerce calls the bill a “giant tax hike” to pay for “social welfare programs.” But supporters say the measure already approved by the House gives certainty to businesses and funds vital health insurance for the poor.

If the tax isn’t extended, Medicaid spending could be cut by $1 billion annually starting in the 2017-18 budget year unless another source of funding is used.

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