HICA Alternatives in the Works

Legislators are looking into alternatives for Michigan’s Health Insurance Claims Assessment (HICA) to help finance Medicaid programs. Attorney General Bill Schuette and others are preparing to defend the tax before the 6^th U.S. Circuit Court of Appeals.

Previously, the federal circuit court upheld HICA in 2014, but last month the U.S. Supreme Court ruled in a 6-2 decision in Gobeille v. Liberty Mutual Insurance Company that Vermont could not require self-insured companies to provide data on health insurance claims and covered individuals. With this decision, the 2014 Self-Insurance Institute of American v. Snyder ruling was vacated. Oral arguments have not yet been scheduled.

Business and healthcare groups, along with legislators, are discussing a new system to raise the money for a federal match for Medicaid. Senator Ken Horn (R-Frankenmuth), chairman of the Senate workgroup, commented the group is leaning toward a proposal using use tax revenue levied against the state’s Medicaid HMOs. The workgroup is hoping whichever proposal is adopted will allow for HICA to be phased out by 2020.

posted by PAA Online , Friday, April 8, 2016 9:55 AM
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