When you get an invoice or quote from us, you'll see an amount for federal and state taxes and fees. Those charges may include the following items.

Federal taxes and fees

  • The Federal Insurance Premium Tax. This annual tax on the insurance industry provides revenue to the federal government.
  • The Comparative Effectiveness Fee. This annual tax funds the Patient-Centered Outcomes Research Institute. The institute compares how well different medical treatments work.
  • The Reinsurance Fee. The Transitional Reinsurance Program was created to stabilize the cost of insurance during the first years of health care reform. The Reinsurance Fee supports this program.
  • The Marketplace Fee. The Affordable Care Act created a new way to shop online for health insurance. It’s called the Health Insurance Marketplace. This fee pays to run the Marketplace and make it self-sustaining by Jan. 1, 2015.
  • The Risk Adjustment Fee. This fee supports a federal program that compensates health insurance companies that have a less healthy membership. This helps keep the cost of insurance stable.

State taxes

  • The Michigan Claims Tax. This tax went into effect on Jan. 1, 2012. It’s a 1 percent tax on certain health insurance claims. It replaced the 6 percent tax on Michigan’s Medicaid services.
  • The State Insurance Premium Tax. A quarterly tax on Michigan-based health insurance premiums.