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Health Insurance Claims Assessment (HICA) Act
On June 11, 2014, Governor Snyder signed legislation (P.A. 162 of 2014) amending the Health Insurance Claims Assessment (HICA) Act (P. A. 142 of 2011). Beginning July 1, 2014, the assessment rate paid by most third party administrators, carriers and self-insured entities on certain paid health care claims will be reduced from one percent (1%) to three quarters of one percent (0.75%). You should continue to use Form 4930, Quarterly Worksheet for Health Insurance Claims Assessment (HICA), to calculate your assessment amount, but you should use the new rate for claims with dates of service on or after July 1, 2014. You will continue to use the old rate for claims with dates of service prior to July 1, 2014. An updated Form 4930, reflecting both rates, will be available prior to the due date of the third quarterly payment.
PA 58 of 2013 has extended The Health Insurance Claims Assessment through 2017.
Registration and Payments
All payments under the HICA Act are required to be remitted to the Michigan Department of Treasury (Treasury) by Electronic Funds Transfer (EFT). EFT payment options include both EFT Credit and EFT Debit. In order to be registered to make payments by EFT, you must complete and submit Form 4926, Electronic Funds Transfer Application – Health Insurance Claims Assessment to Treasury. Please allow at least four weeks for processing your EFT application.
An annual return is required to be e-filed online through an interface with Treasury. E-file your annual return using Treasury's secure Web site, https://treas-secure.state.mi.us/HICA/ .
Note: If you received a notification letter from Treasury, but do not believe you are subject to the HICA, you must submit to Treasury a written letter of explanation detailing why you believe you are not subject to the HICA. Treasury will acknowledge receipt of your letter. A self-determination that you are not subject to HICA is not binding on Treasury and is subject to potential review or audit at a later date. Mail the letter to:
Michigan Department of Treasury
Health Insurance Claims Assessment (HICA) Act (P.A. 142 of 2011)
Health Insurance Claims Assessment (HICA) Overview
Electronic Funds Transfer (EFT):
Form 4930, Quarterly Worksheet for Health Insurance Claims Assessment (HICA)
(Revised July 2014)
Form 5015, HICA Instruction Booklet , including:
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