The Michigan Legislature just approved a 1% tax to be
applied to most health insurance claims, beginning 1/1/12. The tax will be calculated on a pooled basis
and added to the groups monthly premium billing as a separate line item – for
both individual and group plans. It
applies to both individual and group plans. Michigan residents will be taxed
for services received in Michigan. The
tax replaces the current 6% use tax applied to Medicaid managed care plan
services and will be used to support Michigan’s Medicaid program. It also insures that Michigan continues to
receive federal funds for its Medicaid program.
In national news, the Justice Department is appealing to the
Supreme Court to rule on a decision by an Atlanta federal appeals court that
the individual mandate is unconstitutional.
This development makes it more than likely that the Supreme Court will
now agree to hear one or more of the cases involving challenges to the law.
Michigan governor, Rick Snyder, has issued a directive to
proceed with the formation and implementation of a Michigan Health
Exchange. An argument FOR, is that by so
doing, Michigan will have more control over our own Exchange, vs. going with a
Federal Exchange. Some states, however,
are refusing or returning the Federal Subsidy to implement their own
Exchange. Their thought being that
they’ll “wait and see” at least until 2013, as there is fear that even their “own”
Exchange will be rife with federally required and mandatory regulations; and if
enough states decline to participate the requirement for state Exchanges could
change significantly before the 2014 deadline.
Stay tuned ……..
