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Delta Dental recently communicated information regarding  the Michigan Health Insurance Claims Assessment Act (HICAA), which imposes a one percent tax on certain health claims. This tax takes effect on January 1, 2012. (See previous post from Delta Dental)

We wanted to alert you to an important change since their last communication.  Delta Dental of Michigan will also be notifying their clients directly.

Based on further review of state regulations and additional clarification from the State of Michigan regarding the manner in which the tax amounts may be calculated, Delta Dental has determined that it will change the methodology for collecting the tax from Michigan risk groups.

The previous method applied a .74 percent tax on billed premiums to all groups under 2,500 subscribers.

The new methodology for groups under 2,500 will now be based on the percentage of the group’s subscribers that are Michigan residents.  This is driven primarily because claims for non-Michigan residents are NOT subject to the tax.

The claims tax amounts will be as follows:

MI residents
MI residents
MI residents
MI residents
MI residents
19% and below
MI residents
 Groups up to
499 subscribers
 0.81% 0.71% 0.63% 0.44% 0.30% 0.05%
 Groups with
500–2,499 subscribers
 0.87% 0.76% 0.68% 0.48% 0.32%  0.06%

This change will begin with February bills, as January bills have already been mailed for risk groups.  Claims tax assessment amounts will be reviewed annually and may change in the future.

If you have questions regarding the new law, a frequently asked questions document has been developed and can be accessed at

If you have any questions regarding the above information, please contact Delta at (517) 347-5228 or your Salus Group Agent.

Thank you.

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