May 2018
Senate Votes to
Eliminate HICA
Contact: Delaney McKinley
517-487-8530 • [email protected]
After years of turmoil over
the rising cost of health care and
Medicaid financing, the Senate
overwhelmingly voted to pass
MMA-supported legislation to
eliminate the Health Insurance
Claims Act (HICA) tax, a
longstanding priority of MMA
and its membership.
“As employers and individuals
struggle with the rising cost of
health care, it is more important
than ever for legislators to do all
that they can to help rein in
health care costs,” said Delaney
McKinley, MMA senior director
of government affairs and
membership. “This legislation will
eliminate the HICA tax, which
has added over $1.5 billion to the
cost of health care in Michigan
since 2011, while ensuring
necessary funding for Michigan’s
traditional Medicaid plan.”
Senate Bill 992 (Senator Ken
Horn, R-Frankenmuth), Senate
Bill 993 (Senator Peter MacGregor,
R-Rockford) and Senate Bill 994
(Senator Mike Shirkey, R-
Clarklake) would replace the
HICA tax with a smaller Insurance
Provider Assessment (IPA) tax.
“Senate Bills 992-994 present
a win-win-win for Michiganders,
job-providers and the state
budget,” said McKinley. “The
package will eliminate the costly
and uncompetitive HICA tax and
replace it with a more stable
revenue source, the IPA tax.
Manufacturers support this
legislation because it presents a
creative solution that reduces
health care costs and solidifies
our state budget.”
SBs 992-994 now move to the
House where MMA anticipates the
package will move swiftly to a vote
before the summer recess. Contact
your local Representative and urge
them to support SBs 992-994.
Get the latest status on this
issue and more at mimfg.org .
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