Court of appeals to take second look at Mich. health claims tax

The U.S. Court of Appeals for the Sixth Circuit has been ordered to re-examine Michigan’s Health Insurance Claims Assessment Act in light of the Supreme Court’s recent ruling in Gobeille v. Liberty Mutual, reports Bloomberg BNA.

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In 2014, the sixth circuit court upheld Michigan’s claims tax program from a legal challenge claiming the program was preempted by the Employee Retirement Income Security Act. The program imposes a 1 percent tax on medical claims paid within the state.

 

However, the Supreme Court’s recent decision to uphold the preemptive powers of ERISA in Gobeille v. Liberty Mutual means Michigan’s claims tax may be on the chopping block.

 

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