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LANSING, Mich. (AP) — The Michigan Legislature is sending a bill package to Gov. Rick Snyder that would restructure the way the state funds its Medicaid program for low-income people.

On Wednesday the Senate approved legislation to repeal Michigan’s Health Insurance Claims Assessment, a revenue system that foots Michigan’s share of the bill for its Medicaid program by taxing most paid health insurance claims.

The package creates a new Insurance Provider Assessment to levy taxes on private insurers and Medicaid managed care organizations, also known as HMOs, in a way that taxes the latter at a higher rate in order to alleviate private health insurance taxes.

HICA was originally ushered in to replace an expired tax on Medicaid HMOs but has fallen short of revenue goals and increased insurance costs for patients and businesses.