As a Michigan Medicaid lawyer, I stay abreast of what our law makers are up to in Lansing.
The Michigan governement has been busy working on a new way to fund Medicaid. Medicaid is a governmental health insurance that is used by almost 20% of Michigan’s resideents. That is about 2 million people including children, adults, and seniors. The new Medicaid tax started on January 1st, 2012.
In September, Michigan law makers passed the Health Insurance Claims Act, known as “HICCA”. Michigan is making a 1%tax to be colelcted for all insurance claims for those who live in Michigan that are due to medical services. The insurance company must pay this tax for every claim that is made. This tax applies to all private, 3rd party self insured administrators and stop-loss insurance companies.
There are some entites that are excluded, including the Department of Veterans Affairs, Medicare, and Federal employees.
This tax is not going to charged on your deductibles or co-pay, but instead charged on your premium. For example, you will see this as a line item on your premium invoice.