For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) appreciates Michigan lawmakers’ efforts to repeal the tax on paid health care claims.
In place since 2012, the one percent tax on health insurance claims (of both insured and self-insured plans) was paid by plan administrators for medical services rendered in the state to Michigan residents. ERIC had long held that the tax violated a provision of the Employee Retirement Income Security Act (ERISA), which pre-empts state and local laws that relate to employee benefit plans.
Two new bills, first introduced in the State Senate, SB 992 and SB 994, and then approved by the Michigan House of Representatives, would repeal the tax and create an insurance provider assessment on commercial health plans. Self-funded plans would be exempt from the assessment under the bill’s definition of health insurer.
“Employers providing health insurance to their employees in Michigan have been punished long enough by this overreaching law. We urge Governor Snyder to move quickly to sign the bills into law,” said Annette Guarisco Fildes, president and CEO, ERIC.