Despite Opposition, HICA Tax Extended

Despite opposition and urging from the Michigan business community, including members of the Northern Michigan Chamber Alliance, the state of Michigan’s Health Insurance Claims Assessment (HICA) was extended by the Michigan legislature until 2020.

The HICA is a broad-based tax on paid health insurance claims. The tax itself is collected from businesses and individuals who purchase health insurance.

In 2015, the Northern Michigan Chamber Alliance lobbied the state legislature and in a letter urged them not to extend the HICA other options could be vetted with the Federal Government. The business community further argued that the tax was implemented in 2012 as a interim solution to help fund Michigan’s Medicaid program, and further extending it would further increase the cost of health care and serve as yet another disincentive to providing health care in Michigan.

See letter here: Legislative Memo_Oppose 5105_Dec 2015

For more information: HICA Senate Fiscal Agency Analysis, February 2016