In September 2011, the Michigan legislature passed a new 1% tax on health insurance claims. Beginning January 1, 2012 this tax will be levied on the insurance companies but, rest assured, it will come through to you – one way or another. Blue Cross Blue Shield has already indicated they will be showing the tax assessment as an additional line item on their premium invoice. Other companies may simply choose to charge it as part of the premium. The tax will apply to insurance companies as well as Third Party Administrators for self-insured programs. It will apply to Michigan residents who receive medical services in Michigan.
This new tax is intended to replace an expiring 6% tax on certain Medicaid managed care programs by spreading the tax over a much broader base to reduce the impact. It guarantees continued funding for some of the State’s most vulnerable residents, including elderly people receiving long-term care in nursing homes and health care for children.
The tax will not apply to copays and deductibles. Claims paid by Medicare, Department of Veterans Affairs and those of federal employees are exempt.
For more details on Michigan Health Insurance or to get a free Michigan health insurance quote contact us at 800.225.5582.
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