According to a report in MIRS, health insurance costs in Michigan are expected to go up by 2.7 percent and the state’s General Fund will take another $40 million hit in Fiscal Year (FY) 2018 under a federal health care tax that’s set to take effect January 1, 2018.
The Health Insurance Tax (HIT), created to pay for the state exchanges under the Affordable Care Act (ACA) takes effect on January 1, 2018. A report from Oliver Wyman Health concludes that the tax will mean an average increase of $165 per person in the individual market and up to $523 per family in the small group market.
This means that over the next ten years, the mean premium increases will range from $2,376 per person in the individual market to $6,969 per family in the large group market. Overall, this will have a $7.7 billion impact on Michigan over the next 10 years, according to the Michigan Association of Health Plans.
Michigan Congressmen Mike Bishop (R-8), Jack Bergman (R-1), Bill Huizenga (R-2), Paul Mitchell (R-10), John Moolenaar (R-4), Dave Trott (R-11) and Tim Walberg (R-7) cosponsored legislation H.R. 246, that would stop the Health Insurance Tax from taking effect in 2018. The bill has been referred to the U.S. Energy and Commerce Subcommittee on Health.