Use Tax Exemption Enacted
Beginning April 1, 2012, Michigan use tax will no longer apply to Medicaid contracted health plans and specialty prepaid health plans. [Public Act 141 (S.B. 347), Laws 2011, effective September 20, 2011]
With the enactment of the Health Insurance Claims Assessment (HICA) Act, beginning January 1, 2012, a 1% assessment will be imposed on a carrier and third-party administrator's paid claims. The assessment will be 0.1% for a carrier with a suspension or exemption under section 3717 of the Insurance Code of 1956 as of September 20, 2011. The assessment must not exceed $10,000 per insured individual or covered life annually. The tax will sunset on January 1, 2014. [Public Act 142 (S.B. 348), Laws 2011, effective September 20, 2011]
For a group health plan that utilizes the services of a third-party administrator or an excess loss or stop loss insurer, the assessment will be the responsibility of the administrator or insurer, and not the group health plan sponsor. Every carrier or third-party administrator subject to assessment must file returns on April 30, July 30, October 30, and January 30 of every year for the preceding calendar quarter. The Department of Treasury may require payment by electric funds transfer. Records must be kept for four years after the assessment.