Kapnick  Health Care Reform Update A Week in Review
People helping people...it's what we do best                    Vol. 2 |  Issue 2	December 2011

Kapnick Introduces it's NEW "Health Care Impact Analysis Tool." Click Here to learn More More Health Care Reform (HCR) Links HCR Timeline HCR Chart Please contact your designated Client Executive for more information regarding  these topics.

Week of 12/12/2011 - 12/19/2011: click here to view all HCR materials Health Care Reform – 1% Tax on Medical Claims On September 20, 2011, Governor Rick Snyder signed into law the Health Insurance Claims Assessment Act, S.B. 348, which imposes a one percent tax on paid health care claims. The tax replaces the current six percent tax on Medicaid and goes into effect January 1, 2012. Insurers (fully-insured plans) and third party claims administrators (self-funded plans) will be responsible for paying the tax. Blue Cross Blue Shield of Michigan and Blue Care Network will be adding the cost as a separate line item on their monthly group invoices. We expect other insurers to do something similar. What is Taxable? The new tax applies to the majority of health care claims for services received by Michigan residents from in-state doctors. There are a few exceptions where the tax will not apply: Employer group health plan cost-sharing (copays, deductibles, and coinsurance) Medical Flexible Spending Account (FSA), Health Savings Account (HSA) or Archer Medical Savings Account (MSA) reimbursements Workers’ compensation and Long-Term Care claims Medical claims paid under automobile insurance Medicare claims (including Medicare part D and Medicare Advantage) TRICARE (military-CHAMPUS and the United States Veterans Administration claims) Health Care Reform – MI Health Insurance Exchange The Department of Health and Human Services awarded Michigan a $9.85 million grant on November 29, 2011 toward the establishment of an affordable health insurance exchange. The Patient Protection and Affordable Care Act (PPACA) mandates that all states must set up exchanges by January 2013. The exchanges are expected to be operating by 2014. The exchanges are intended to be marketplaces where small businesses and individuals can choose among insurance plans. Currently, Michigan is one of several states suing over the constitutionality of the PPACA. Back to top As part of our service to you, we regularly compile short reports on new and interesting developments and the issues the developments raise. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments are always welcome. Kapnick Insurance Group. Back to top To unsubscribe Click Here

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