Michigan consumers likely to feel health claims fee effect

By: Associated Press Email
By: Associated Press Email

Michigan residents with health insurance could get hit this fall with a premium increase tied to a new assessment on health insurance claims.

The assessment is intended to raise $400 million the state can use to draw $800 million in federal funds for Medicaid, two-thirds of which is paid for by the federal government.

Not passing the assessment could tear a $1.2 billion hole in the Medicaid budget, which provides health care for nearly 2 million low-income Michigan residents, most of them children, seniors, pregnant women or people with disabilities.

The 1 percent fee is likely to be felt by consumers. Blue Cross Blue Shield of Michigan estimates the fee would cost its customers more than $100 million annually.

The legislation passed the Senate but must still pass the House.

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