Michigan Governor Signs Health Care Claims Tax Into Law – Self-Funded Employers Pay Through TPA
MyHealthGuide Source: Jerry Geisel, 9/20/2011, Business Insurance Article – Michigan
LANSING, MI — Michigan Governor Rick Snyder on Tuesday signed into law legislation, S.B. 348, that will impose a new 1% tax on paid health care claims.
The tax will be paid starting Jan. 1, 2012, by insurers that provide fully insured plans and by third-party claims administrators in the case of self-funded plans.The tax, which is intended to help fund Michigan’s Medicaid program, will be paid quarterly starting April 30, 2012.
The tax is intended to generate $400 million in annual revenues for the state. The most that can be assessed for any individual’s claims experience is $10,000 per year. If the revenue collected exceeds that amount, insurers and TPAs would receive a credit against their assessments due the next year.
Other states that have similar taxes include Maine, which is phasing out its tax, Massachusetts and New York.
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