ERIC Urges Michigan Governor to Repeal Tax on Health Care Claims

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.

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All media inquiries to The ERISA Industry Committee should be directed to:

Kelly Broadway, 202.627.1918, kbroadway@eric.org

About the ERISA Industry Committee
ERIC helps America’s largest employers stay ahead of employee benefit policy. ERIC member companies are leaders in every sector of the economy, and we represent them in their capacity as sponsors of employee benefit plans for their own workforce. Only ERIC provides the combination of intel, expertise, collaboration, and lobbying that exclusively serves the interests of large employers who provide health, retirement, and compensation benefits to their nationwide workforce.