MI Senate Hits Pause Button on $1.98B HICA Tax Hike; Plans to Revisit in Jan. 2016

December 21, 2015

Thanks to your emails, phone calls and advocacy efforts, the Michigan Senate hit the pause button on efforts to rush through a $1.98 billion tax increase on individuals and businesses who purchase health insurance in the final days of the 2015 legislative session. While the good news is that this tax irresponsible legislation will not be signed into law in 2015, the bad news is that the bill remains on the Senate calendar and could come up for a vote when the Senate returns to Lansing as early as January 13. 

The Michigan Chamber is strongly opposed to House Bill 5105 (Pscholka). We worked around the clock in the closing days of the 2015 legislative session to kill this tax increase. Although our efforts are working, big-spending House Republicans, who passed this bill earlier in December, continue to push the Senate to take a vote. 

We hope you will thank the Senate for not rushing to drastically alter current law to extend the sunset of the HICA tax by seven years and nine months - from December 31, 2017 to September 30, 2025. And we hope you will urge them to hold strong against this $1.98 billion tax increase on businesses and individuals purchasing health insurance. 

Since its inception in 2011, Michigan's Health Insurance Claims Assessment, or HICA tax, has added nearly $1 billion to the already high cost of purchasing health insurance in Michigan. Passage of House Bill 5105 would be both unwise and unfair. No other state in the country imposes such a penalty tax. 

Take action today! Please call your State Senator to thank him or her for holding the line on the $1.98 billion HICA tax increase in 2015 and strongly urge them to Vote NO on HB 5105 when it is considered in early 2016.