Skip Navigation
Michigan TaxesMichigan.gov, Official Portal for the State of Michigan
Michigan.gov Home
close print view
FAQ
  Health Insurance Claims Assessment (HICA) Act
The only service provided by a licensed Third Party Administrator (TPA) in Michigan is health care and dependent care flex benefit administration for a client. The TPA receives the employees' payroll deductions for health and dependent care and makes reimbursements to these employees when they submit the required documentation showing out of pocket payments for co-pays etc. and dependent care costs. Are the payments made by this TPA subject to the assessment?
 
Answer:
No. Pursuant to Section 2(s)(viii) of the Health Insurance Claims Assessment (HICA) Act, reimbursements made to individuals under a flexible spending arrangement are specifically excluded from the definition of "paid claims" subject to the assessment, provided that the flexible spending arrangement in question meets the definition of that term under Section 106(c)(2) of the Internal Revenue Code.

Michigan Business One Stop
Link to Department and Agencies Web Site Index
Link to Statewide Online Services Index
Link to Statewide Web-based Surveys
Link to RSS feeds available on this site
FAQ Categories
 •  Index of Tax FAQ's
 •  Individual Income Tax
 •  Business Taxes
 •  1099-MISC Filing Requirements
 •  Collections/Delinquent Accounts
 •  Tax Increment Financing
 •  Service Fee/PILOT Housing
 •  State Real Estate Transfer Tax
 •  Native American
 •  Michigan Business Tax
 •  Status of Individual Refund
 •  Health Insurance Claims Assessment (HICA) Act
 •  Energy Home Improvement Credit
 •  Corporate Income Tax
QR code

Michigan.gov Home
PoliciesMichigan NewsMichigan.gov Survey

Copyright © 2014 State of Michigan