We are pleased to report that Governor Snyder today signed legislation long-sought by the Michigan Chamber to repeal Mcihigan's wholly unique and uncompetitive Health Insurance Claims Tax, or "HICA Tax."
Senate Bills 992-994 were signed into law today with immediate effect as Public Act 173 of 2018. This new law turns the page on the HICA tax, which has served as a disincentive to purchasing health insurance and has added over $1.5 billion to the cost of health insurance coverage since 2011.
The HICA Tax has proven to be an unstable and inadequate revenue source for the state. The replacement tax, a new Insurance Provider Assessment (IPA), will cut health insurance taxes for employers and individuals and continue to fund Michigan’s traditional Medicaid program in a fair and stable way. The Michigan Chamber fully supports this legislation because it will create a tax cut for employers purchasing health insurance for their employees as well as individuals purchasing their own coverage.
Please contact Wendy Block with any questions at 517.371.7678 or email@example.com.