Legislation was signed into law in 2018 to repeal Michigan’s wholly unique and uncompetitive Health Insurance Claims Assessment (“HICA Tax”).
This legislation was a key priority for Michigan Chamber because the HICA Tax has long 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 legislation is a “win” for job providers because it:
- Repeals the HICA Tax (a one percent tax on paid health insurance claims), saving job providers more than $300 million annually;
- Replaces the costly HICA tax with a smaller and more stable revenue source in the Insurance Provider Assessment (IPA) tax;
- Reduces health insurance costs; and
- Provides stability to the state budget, including the state’s Medicaid budget.
Where We Stand:
The Michigan Chamber supported the repeal and replacement of the HICA Tax (SBs 992-94 of 2018). We will continue to work to identify ways to reduce the cost of employer-sponsored health insurance.
Michigan HICA Tax Repeal? Signs Point to Yes!, Miller Johnson Attorneys, June 14, 2018
Governor Signs Chamber-Backed Bills to Repeal Health Insurance Claims Assessment or "HICA Tax", Michigan Chamber of Commerce, June 11, 2018