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Kasich's Veto on Hiking the Managed-Care Tax, Explained

Kent Scarrett
OHIO MUNICIPAL LEAGUE

One of Gov. John Kasich’s vetoes overridden by the House last week involves a tax on managed-care organizations that helps raise money for counties and transit authorities. Those local groups are hoping senators go along with that override.

Kasich had vetoed a plan to ask for a tax increase on  managed-care organizations.

But Kent Scarett with the Ohio Municipal League says counties and transit authorities raise $200 million each year through piggyback sales taxes on that MCO tax, so the loss will be devastating.

“They’re really going to be on their own to try and make up these differences, and we’re all in the pot together to try and continue with the level of services that businesses and residents expect,” he said.

Business groups have come out for Kasich’s veto, saying an override and the tax increase that could result could raise insurance costs. If the Senate agrees to override, the state will ask the feds to broaden and hike the tax, and Kasich says he doubts the federal government would OK it.

Karen is a lifelong Ohioan who has served as news director at WCBE-FM, assignment editor/overnight anchor at WBNS-TV, and afternoon drive anchor/assignment editor in WTAM-AM in Cleveland. In addition to her daily reporting for Ohio’s public radio stations, she’s reported for NPR, the BBC, ABC Radio News and other news outlets. She hosts and produces the Statehouse News Bureau’s weekly TV show “The State of Ohio”, which airs on PBS stations statewide. She’s also a frequent guest on WOSU TV’s “Columbus on the Record”, a regular panelist on “The Sound of Ideas” on ideastream in Cleveland, appeared on the inaugural edition of “Face the State” on WBNS-TV and occasionally reports for “PBS Newshour”. She’s often called to moderate debates, including the Columbus Metropolitan Club’s Issue 3/legal marijuana debate and its pre-primary mayoral debate, and the City Club of Cleveland’s US Senate debate in 2012.