Health Insurance

Governor Signs Chamber-Backed Bills to Repeal Health Insurance Claims Assessment or "HICA Tax"

Governor Signs Chamber-Backed Bills to Repeal HICA Tax

We are pleased to report that Governor Snyder today signed legislation long-sought by the Michigan Chamber to repeal Michigan'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.

Chamber Applauds House Passage of Legislation to Repeal and Replace Health Insurance Tax ("HICA"); Encourages Governor's Signature

capitol dome

Michigan Chamber Vice President of Business Advocacy Wendy Block issued the following statement today in response to State House passage of legislation to repeal and replace Michigan's Health Insurance Claims Tax ("HICA Tax"):

IRS Reverses Policy, Requires Individuals to Certify Individual Mandate Compliance

On Oct. 13, 2017, the IRS reversed a recent policy change in how it monitors compliance with the ACA’s individual mandate. For the upcoming 2018 filing season (filing 2017 tax returns), the IRS‎ will not accept electronically filed tax returns where the taxpayer does not certify whether the individual had health insurance for the year. In addition, paper returns that do not certify compliance with the individual mandate may be suspended pending receipt of additional information, and any refunds due may be delayed.

MI Chamber Champions Repeal of "HICA Tax"

The Michigan Chamber on June 8 issued the following statement in response to nearly unanimous passage of legislation championed by the Michigan Chamber to repeal Michigan’s unique and uncompetitive Health Insurance Claims Assessment, or “HICA Tax” (Senate Bills 987-990). The HICA Tax is a 0.75 percent tax on paid health insurance claims.  It is paid by individuals and businesses alike and has added nearly $1 billion to the cost of health insurance since its enactment in 2011.

IRS Accelerates Tax Help for Employers

The Internal Revenue Service (IRS) has launched a new program to help employers avoid interest and penalty charges related to their payroll and employment tax obligations.

Under the new program, called the Early Interaction Initiative, the IRS will more closely monitor employers’ federal tax deposits (FTDs) and provide accelerated alerts to employers that fall behind on their required payments. These alerts may include letters, automated phone messages and personal phone calls or visits from the IRS.

Congress to delay ACA Cadillac tax on pricey health plans until 2020

A decision by Congress to defer a new tax on expensive employer health plans would cost the government an estimated $9 billion and have a potent symbolic effect as the first major change that lawmakers have made to the Affordable Care Act since its passage.

The two-year postponement in what has been dubbed the “Cadillac tax,” because it applies to high-priced insurance, is the most significant of three changes to ACA taxes that are woven into a sprawling budget package on which the House and Senate are preparing to vote within the next few days.

REPEALED: Health Care Reform's Auto-Enrollment Requirement

On November 2, 2015, President Obama signed the "Bipartisan Budget Act of 2015." The Bipartisan Budget Act of 2015 includes a number of provisions and, with respect to Health Care Reform, it repeals the auto-enrollment requirement that applies to certain larger employers.

As originally enacted, Health Care Reform required employers with more than 200 full-time employees to: (1) automatically enroll new full-time employees in one of the employer's health benefit plans (after any applicable waiting period); and (2) continue enrollment of current employees.

Health Insurance Deductibles Growing Six Times Faster Than Wages, Study Finds

The steady upward creep in health insurance deductibles has easily outpaced the average increase in a worker’s wages over the last five years, according to a new analysis released on Tuesday by the Kaiser Family Foundation.

Kaiser, a health policy research group that conducts a yearly survey of employer health benefits, calculates that deductibles have risen more than six times faster than workers’ earnings since 2010.