MAHP Urges Provider Tax Due Diligence

Today, Dominick Pallone, Executive Director of the Michigan Association of Health Plans (MAHP), issued the following statement following the House passage of House Bill 4968, which is part of a bipartisan budget deal.

“Our members appreciate the Legislature’s willingness to afford the executive branch broad taxing authorities to replace Michigan’s Insurance Provider Assessment (IPA) to support Michigan’s Medicaid program.

However, with great power comes great responsibility. We urge executive leaders to exercise patience and due diligence by not administering any immediate changes to the IPA that would come at the expense of commercial health insurance. We also call upon Republicans and Democrats to work in the same bipartisan fashion they have demonstrated in this budget agreement to support our call to federal leaders to allow Michigan a three-year transition period to change our current IPA to avoid increasing premiums on employers and employees.

Commercial employer-sponsored health insurance is already facing unprecedented acuity claims and prescription drug costs, which are driving the cost of health insurance for employers and employees across the state. Forcing the commercial market to subsidize even more of Michigan’s Medicaid costs through a new IPA will make health care less affordable for employers and working Michiganders.”

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