Blues Move To Implement New Michigan Claims Tax

From: Blue Cross Blue Shield of Michigan

Now that a 1 percent tax on all health insurance claims is the law in Michigan, the Blues are taking steps to adjust to its provisions.

The state of Michigan passed the new 1 percent tax to be applied to certain Michigan health insurance claims beginning Jan. 1, 2012. Gov. Rick Snyder signed the bill into law on Sept. 20, 2011.

The new 1 percent tax will replace the current 6 percent use tax applied to Medicaid managed care plan services and will be used to support Michigan’s Medicaid program and ensure that Michigan continues to receive funds from the federal government. The tax applies to self-funded health care plans and health insurance carriers operating in Michigan.

We’ve put together a preliminary FAQ (PDF) that should be helpful in answering your clients’ questions.

We’ll keep you informed as information becomes available. We will also notify group customers and individual members.

Questions? Contact your managing agent.

The summary and FAQs are provided for information purposes only. They should not be considered legal advice or relied upon as such. Groups should consult their legal counsel and the underlying laws and regulations in order to gain a full understanding of the law.