Health Insurance Claims Tax Calculator

The state of Michigan has changed the way it raises money to support Medicaid.

On Jan. 1, 2012, the state replaced the six percent tax on Medicaid services with a one percent tax on certain health insurance claims. All health insurance carriers operating in Michigan have to pay the new tax. 

We’re applying a small increase across all premiums to pay for this Health Insurance Claims Assessment Tax. You’ll notice a new line for the tax on your bill.

For group plans, things work a little differently. The tax only applies to services received by Michigan residents in Michigan, so groups with more out-of-state members will notice less of an increase in their premiums.

To help you figure out how much you’ll have to pay, we’ve put together a quick and easy calculator.

What does it do?

This tool calculates your tax amount and adds it to your premium. You can choose to view your total monthly, quarterly and annual costs.

How do I use it?

All you have to do is enter:

• Whether you have Blue Cross Blue Shield of Michigan or Blue Care Network coverage
• The type of plan you have
• Your monthly premium

Are you an employer with a self-funded or experience-rated plan? You’ll also have to enter additional information about how many Michigan residents are covered by your plan.