LANSING, Mich. (AP) — A new Michigan law that will place a 1 percent tax on health insurance claims faces a court challenge.
The Self-Insurance Institute of America Inc. filed a suit challenging the law Thursday in federal court. The suit says the Michigan assessment is pre-empted by federal law.
The suit seeks to block the assessment related to self-insured group health plans.
The Michigan assessment is scheduled to begin Jan. 1 to help fund Medicaid programs. It would be paid to the state by insurers or HMOs.