The days of the Health Insurance Claims Tax are finally over.
With Governor Snyder signing NFIB supported legislation into law, the days of the Health Insurance Claims Assessment (HICA Tax) are finally over. The new law, Public Act 173 of 2018, will jettison the old claims tax and replace it with a health insurer-based tax to support Medicaid funding and raise other revenue. The HICA tax currently adds .75 percent onto the amount of every medical claim paid by employers, employees and private citizens to raise federal match money for the state’s Medicaid program. NFIB has been fighting to eliminate the tax since it was created in 2011 when the Federal government declared that the current method employed by Michigan to raise match money (via a tax on Medicaid Health Maintenance Organizations) was no longer allowed.