Health Care Law Blog

Health Care Claims Tax Passes

On August 24, the Michigan legislature passed two bills which are expected to be signed by Governor Snyder, which will be known as the "Health Insurance Claims Assessment Act".  The Health Insurance Claims Assessment Act will assess a 1% health care claims tax on paid health insurance claims in Michigan.  This tax will be paid by health insurers and replaces an existing 6% assessment on Medicaid health claims.  The tax will be assessed for a period of two years, beginning January 1, 2012 and ending January 1, 2014.

Some industries that are expected to be heavily impacted by this tax are already questioning its fairness.  We are also told that the insurance companies will likely be raising their premiums in light of the tax.  Still, while no one gets excited about a new tax, this is a crucial step toward preserving the Medicaid benefits in our state and protecting health care providers against major cuts in funding.  With so many people dependent on Medicaid in our state right now, cutting Medicaid benefits would prevent those who have already been hurt by the economy from accessing the health care they need.  It would likewise hurt the health care providers, such as hospices, hospitals, and physicians, who remain vigilantly committed to serving them.

If you have any questions, please let me know.

Categories: Medicare/Medicaid, Tax