Certain plans will be exempt from the tax, including Medicare Advantage plans, Medicare prescription drug plans and plans covering federal employees.
In addition, the tax will not be assessed on services provided in Michigan to non-Michigan residents, according to the law.
The tax is intended to generate $400 million in annual revenues for the state. If the revenue collected exceeds that amount, insurers and TPAs would receive a credit against their assessments due the next year.
Other states that have similar taxes include Maine, which is phasing out its tax, Massachusetts and New York.
Editor’s Note: Medicaid “insurance” in Texas is the best insurance in the world. Better than what Federal Employees get. It’s free, and it’s good coverage – $5 co-pay to see a doctor, little or no out-of-pocket expenses. Hell of a deal for those than can afford a $5 co-pay. Why work, earn too much, and have to pay those exhorbitant health insurance premiums for lousy benefits? What do you mean I have to pay a deductible? That’s outrageous!