As a reminder for affected clients, your ADP TotalSource benefits invoice currently includes a separate line charge related to the 1 percent tax that the Michigan legislature approved to be applied to certain Michigan health insurance claims. This Health Insurance Claims Assessment Act (HICAA) became law on September 20, 2011 and employers in Michigan have been assessed this tax through their health insurers since 2012.
The Michigan claims tax recoupment factors established by the carriers currently remains the same at .84 of BCN (HMO) premium and .68 of BCBSM (PPO) premium. We have received notice that the BCBSM recoupment factor will reduce to .60 of premium beginning with the June 1, 2014 renewal and the BCN factor will remain the same.
Also beginning in June 1, 2014, a state of Michigan insurance premium tax of 1.32% of the BCBSM (PPO) health insurance premiums will be applied to your invoice.
We have also learned that BCBSM and BCN will begin charging all Michigan employers the taxes and fees related to the Affordable Care Act (ACA) beginning January 1, 2014. These federal taxes were established to help finance the health care reform programs under the ACA.
To learn more about each of the taxes mentioned above, the charge associated with each, and how to interpret your February benefits invoice, click here.