December 06, 2011

New 1% Tax on Michigan Health Insurance ~Don Volaric, 9th Congressional Dist.

Date: Mon, Dec 5, 2011 at 11:33 PM
Subject: New Tax on Health Insurance
Hello Mr. Dunn
Attached; 1pg PDF (As per request) 
Lynn & Don Volaric

Don Volaric
  • On Sept. 20, 2011, Michigan Governor Rick Snyder signed into law the Health Insurance Claims Assessment Act, S.B. 348
(copy of PDF )

The Volaric family would like to inform you that the Michigan Legislature has approved a

new 1% state tax assessment or Health Insurance Claims Assessment on certain paid

Michigan health insurance claims. The tax applied on claims incurred on or after Jan. 1,

2012, will be paid by insurance carriers on behalf of fully-insured plans and by third-party

administrators on behalf of self-funded plans.

The tax applies to Michigan residents receiving services in Michigan

The location of a company’s headquarters or its operations is irrelevant.

The law limits the annual tax of $10.000 per insured individual or covered life.

All Medigap plans (Part C claims).

The tax replaces the current 6% use tax applied to Medicaid managed care plan

services and will be used to help fund Michigan’s Medicaid program.

The tax will be a direct cost for employers.

The following claims are exempt from the tax:

Services received outside of Michigan.

Services received in Michigan by non-residents

Claims paid under FEDERAL employee health benefit programs

“These below are OK to be exempt”

Medicare, Medicare Advantage plans, Medicare Part D claims.

TRICARE (military CHAMPUS and the U.S. Veterans Administration claims)

Worker’s compensation and long-term care claims

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If everyone knew all there is to know, they would not do half the things they do, including myself, therefore I must foregive them, including myself.