After years of turmoil over the rising cost of health care and Medicaid financing, the Michigan Legislature passed MMA-driven legislation on Tuesday, 5/29/18, to eliminate the Health Insurance Claims Act (HICA) tax, a longstanding priority of MMA and our members.
The Michigan House of Representatives voted near unanimously, 107-1, in favor of the HICA tax elimination package — 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) — while the bills received near-unanimous support from the Senate on Thursday, 5/17/18.
The legislative package will:
- Save job creators more than $300 million annually
- Replace the costly HICA tax with a smaller and more stable revenue source in the Insurance Provider Assessment (IPA) tax
- Present a creative method to reduce health care costs
- Provide stability to the state budget
- Ensure Michigan manufacturers and local businesses can properly compete in a global market
MMA extends its thanks to Senator Ken Horn, Senator Peter MacGregor, Senator Jim Stamas (R-Midland) and Senator Mike Shirkey for championing this effort for employers and health care purchasers in Michigan. Thanks also to Speaker of the House Tom Leonard (R-Dewitt) and Senate Majority Leader Arlan Meekhof (R-Grand Haven) for their continued leadership on this hard-fought tax cut.
SBs 992-994 now move to the desk of Governor Snyder for his signature. Check out MMA’s legislative analysis of the three-bill package online.
This article originally appeared in the 5/30/18 issue of MFG Voice.