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Kasich Vetoes Tax Increase On Health Insurers

Jul 3, 2017

Governor signs 2013 state budget bill
Credit Ohio Public Radio

Among the items in the two-year state budget bill vetoed by Governor John Kasich is a proposal to increase taxes on health insurers that would have sent money to counties and regional bus services.

Lawmakers proposed the idea to make up for lost revenue from a sales tax being discontinued on Medicaid managed care organizations. The administration says the governor vetoed the proposal because the state would've risked losing a bigger chunk of money and created a 615 million dollar loss for Medicaid. The proposal would've needed to be approved by the U.S. Department of Health and Human Services, which administration officials say likely would not have happened. County leaders now say they're worried they may have to cut program.