Innovative Solutions Agency

Business Owners ~ Is your company eligible for the Health Insurance Tax Credit for 2011??

gabrielle — Wed, 30 Nov 2011 14:00:54 +0000

Here is information I have shared in the past. Always good to have a refresher. This is about the Health Insurance Tax Credit.

Eligible businesses may receive a credit worth up to 35% of their premium costs this year, increasing to 50% in 2014.

Eligibility requirements:

Qualifying employers must pay at least half the health care cost (single employee rate) for full-time employees

Qualifying employers must employ fewer than the equivalent of 25 full-time workers

Average annual employee wages (not including the owner’s or family members’) must be below $50,000

To learn more and to verify whether your business qualifies, contact your tax professional or go to irs.gov and click on “Affordable Care Act Tax Provisions.”

To review all your employee benefit issues and health insurance needs, contact Gabrielle at (616) 732-9000.

Michigan’s 1% Claims Tax, Coming to your health insurance premium in January 2012

gabrielle — Fri, 30 Sep 2011 14:09:06 +0000

Governor Snyder recently signed into law, Public Act 142. This law adds a 1% medical claims tax to our health insurance premiums starting in January 2012. Blue Cross and Blue Shield has put together a good FAQ regarding how this will work (see below). This is a 1% tax on all medical, pharmacy and dental claims to a maximum of $10,000 in tax per insured for services received IN Michigan by a Michigan Resident. We won’t be taxed on claims that fall under our deductible, co-pays or co-insurance, costs we pay out-of-pocket or are reimbured through HSA, HRA, Flexible Spending or other reimbursement arrangements. The tax is collected through the insurance company or third-party adminstrator and will be passed on to the consumers as a separate line item on the monthly premium invoices.

For Fully-Insured Groups and Individual Insureds the amount won’t be specific to your claims but will be an added cost based on all the claims for all the groups/individuals in your “risk pool” at your insurer.

For Self-Funded groups it looks like the insurer will figure the tax per client group based on actual claims paid the prior month. This could end up being a fairly large number if a group has a large claims month.

This new tax will be an additional cost over Premiums and Premium increases for 2012.

Michigan1percenttax

Hi there! Thanks for visiting!

admin — Sat, 23 Oct 2010 11:25:50 +0000

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