MMA Joins Pro-Manufacturing Champions in Support of New HICA Elimination Bills

The testimony will occur the same day Governor Snyder is expected to deliver recommendations for the Fiscal Year 2017-18 budget, which is likely to fall short in the area of Medicaid funding.

Senate Bills 29-32 would eliminate the costly 1 percent tax on all health care claims paid in Michigan and save job providers $332 million annually. Identical MMA-supported legislation was passed by the Legislature in 2016 before being vetoed by Governor Snyder in December.

“The HICA tax has added over $1 billion to the cost of health care in Michigan,” said Delaney McKinley, MMA director of human resource policy and membership development. “We are laser-focused on getting this toxic tax is off the backs of Michigan manufacturers.”

All four Senate sponsors, Senator Ken Horn (R-Frankenmuth), Senator Jim Stamas (R-Midland), Senator Peter MacGregor (R-Rockford) and Senator Mike Shirkey (R-Clarklake), remain committed to this significant cost reduction and long-term Medicaid funding solution.

MMA has worked relentlessly since the inception of the HICA tax to educate legislators on the impact of the anti-competitive health care tax to manufacturers and other employers. The tax’s inability to produce the expected revenue has placed Michigan in a constant struggle to come up with necessary matching Medicaid funds and left job providers under constant threat of a tax increase to cover the shortfall.

Contact Delaney McKinley

Senior Director of Government Affairs and Membership
Call 517-487-8530
E-mail mckinley@mimfg.org