After years of turmoil over the rising cost of health care and Medicaid financing, the Senate overwhelmingly voted last week to pass MMA-supported legislation to eliminate the Health Insurance Claims Act (HICA) tax, a longstanding priority of MMA and our members.
"As employers and individuals struggle with the rising cost of health care, it is more important than ever for legislators to do all that they can to help rein in health care costs," said Delaney McKinley, MMA senior director of government affairs and membership. "This legislation will eliminate the HICA tax, which has added over $1.5 billion to the cost of health care in Michigan since 2011, while ensuring necessary funding for Michigan's traditional Medicaid plan."
Senate Bill 992 (Senator Ken Horn, R-Frankenmuth), Senate Bill 993 (Senator Peter MacGregor, R-Rockford) and Senate Bill 994 (Senator Mike Shirkey, R-Clarklake) would replace the HICA tax with a smaller Insurance Provider Assessment (IPA) tax.
"Senate Bills 992-994 present a win-win-win for Michiganders, job-providers and the state budget," said McKinley. "The package will eliminate the costly and uncompetitive HICA tax and replace it with a more stable revenue source, the IPA tax. Manufacturers support this legislation because it presents a creative solution that reduces health care costs and solidifies our state budget."
SBs 992-994 now move to the House where MMA will testify in support of the bills before the House Committee on Michigan Competitiveness on Tuesday, 5/22/18.
Contact your representative today and ask for their vote in support of reducing health care costs in Michigan.
Check out MMA's legislative analysis of the three-bill package online.
This article originally appeared in the 5/21/18 issue of MFG Voice.