The original Michigan Health Insurance Claims Assessment (HICA) tax rate of 1 percent that went into effect on January 1, 2012, was reduced in April 2014 to .75 percent.
In mid-January 2017, the state of Michigan issued a notice that the HICA tax rate would increase back to 1 percent, effective January 1, 2017.
For the convenience of our clients, Delta Dental of Michigan did not attempt to apply the increase retroactively. Instead, we applied the increase of .25 percent of claims on a go-forward basis only.
The claims tax for self-funded (ASO) clients is 1 percent of claims from Michigan employees/members receiving dental services within the state.
We did not collect the increased amount in the tax rate for claims processed prior to January 31. This change for self-funded (ASO) clients began with the February 2017 bills.
The claims tax for fully insured clients continues to be based on the percentage of the group’s subscribers that are Michigan residents. This is because claims for non-Michigan residents are not subject to the tax.
We did not collect the increased amount in the tax rate for January, February and March premiums. This change will begin with the April 2017 bills.
