MMA testified before the Senate Committee on Michigan Competitiveness in support of new legislation to eliminate the anti-competitive, costly Health Insurance Claims Assessment (HICA) tax while responsibly funding Michigan’s Medicaid program.
The testimony will occur the same day Governor Snyder is expected to deliver recommendations for the Fiscal Year 2017-18 budget, which is likely to fall short in the area of Medicaid funding.
Senate Bills 29-32 would eliminate the costly 1 percent tax on all health care claims paid in Michigan and save job providers $332 million annually. Identical MMA-supported legislation was passed by the Legislature in 2016 before being vetoed by Governor Snyder in December.
“The HICA tax has added over $1 billion to the cost of health care in Michigan,” said Delaney McKinley, MMA director of human resource policy and membership development. “We are laser-focused on getting this toxic tax is off the backs of Michigan manufacturers.”
All four Senate sponsors, Senator Ken Horn (R-Frankenmuth), Senator Jim Stamas (R-Midland), Senator Peter MacGregor (R-Rockford) and Senator Mike Shirkey (R-Clarklake), remain committed to this significant cost reduction and long-term Medicaid funding solution.
MMA has worked relentlessly since the inception of the HICA tax to educate legislators on the impact of the anti-competitive health care tax to manufacturers and other employers. The tax’s inability to produce the expected revenue has placed Michigan in a constant struggle to come up with necessary matching Medicaid funds and left job providers under constant threat of a tax increase to cover the shortfall.