Health Insurance Claims Assessment (HICA)
HMO Use Tax revenues will not be federally reimbursed for purposes of Medicaid funding, therefore, the HICA tax rate automatically reverted to 1.0% effective January 1, 2017. Taxpayers subject to HICA are required to pay a 1.0% tax on paid claims effective January 1, 2017, and continuing until the current HICA sunset date of July 1, 2020. You should continue to use Form 4930, Quarterly Worksheet for Health Insurance Claims Assessment (HICA), to calculate your assessment amount.
- Notice to taxpayers regarding the increase in the Health Insurance Claims Assessment (HICA) tax rate and the suspension of the HMO Use Tax
- Effective January 1, 2017 the HICA tax rate reverted back to 1.0% on paid claims.
- 2016 Annual Return now available. Remember to enter the proportional credit amount on annual return line 18 from Treasury’s letter dated June 2016.
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.
- Quarterly payment due dates are April 30, July 30, October 30 and January 30.
All EFT transmissions must be made at least one business day before the due date. If the due date falls on a weekend, state holiday, or banking holiday, the due date is the next business day.
- EFT Credit: Filers must contact their financial institution to determine when the transaction needs to be initiated for it to be settled by our bank on or before the due date.
Note: Improper formatting of your EFT Credit payment file may result in the payment being misapplied. You must follow the CCD+ format outlined in Form 4925, Instructions for Payment of Health Insurance Claims Assessment (HICA) Using Electronic Funds Transfer (EFT) Credit, when making an EFT Credit payment to Treasury.
- EFT Debit: Filers must complete their transaction by 9:00 p.m. ET one business day prior to the due date for it to be settled by our bank on the due date.
If you are a debit filer with a valid user code and password, visit the Online Michigan Automated Tax Payment System to make a HICA payment.
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/.
- Annual return and payment due date is February 28.
- All registered HICA filers must file an annual return with Treasury.
- Treasury will not issue refunds for $1.00 or less.
Most Commonly Used Forms
- Form 4926, Electronic Funds Transfer Application – Health Insurance Claims Assessment
- Form 4925, Instructions for Payment of Health Insurance Claims Assessment (HICA) Using Electronic Funds Transfer (EFT) Credit
- Form 4930, Quarterly Worksheet for Health Insurance Claims Assessment (HICA)
- Form 5015, HICA Instruction Booklet
- Checklist for Preparing and E-Filing a HICA Annual Return
Michigan Department of Treasury
Special Taxes Division/Misc. Taxes and Fees
PO Box 30781
Lansing, MI 48909-8281