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SIIA Sues Michigan in Response to Health Plan Tax Law December 22, 2011 -- The Self-Insurance Institute of America, Inc. (SIIA) today announced that it has filed a complaint in Federal Court requesting a declaration that Michigan's recently passed Health Insurance Claims Assessment Act is preempted by the Employee Retirement Income Security Act (ERISA). SIIA also seeks an injunction against implementation and enforcement of the Act involving self-insured group health plans that are subject to ERISA or their business partners. In a letter dated August 31, 2011 to Michigan Governor Rick Snyder, SIIA warned of such legal challenge should he sign the legislation (SB 348) into law. The Act creates a new 1% medical claims assessment, effective January 1, 2012, imposed on "Carriers," Third Party Administrators (TPAs) and Pharmacy Benefit Managers (PBMs) who pay claims for medical services to a Michigan resident in Michigan. The Act defines "Carriers" to include Employers, Union Trusts and, probably, stop-loss insurers as well as third party administrators. The Act also imposes significant administrative burdens on Carriers, TPAs and PBMs related to reporting and record keeping. By its express terms, the Act applies to any employer sponsoring a group health plan ("Plan Sponsor") or any TPA working for a group health plan if the plan pays claims for medical services rendered to a Michigan resident in Michigan, whether or not the plan sponsor, TPA or group health plan is located in Michigan. A copy of the full complaint can be accessed through the members' only section of the SIIA web site at www.siia.org. "This lawsuit is consistent with the association's ongoing commitment to protect self-insured employers, captive insurance companies and their business partners from unlawful regulation," said association Chief Operating Officer Mike Ferguson. "State policy-makers, in particular, should be aware that SIIA is prepared to litigate when they overstep their regulatory authority." SIIA is a non-profit trade association dedicated to protecting and promoting the business interests of companies involved in the self-insurance/alternative risk transfer market place, both domestically and internationally. Additional information about SIIA can be accessed on-line at www.siia.org, or by calling 800/851-7789.### |
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