To all Companion Life
Agents and Brokers in Michigan:
As you are aware, effective January 1, 2012, the Legislature
of the State of Michigan passed a 1% health claims tax imposed on all health
insurance claims incurred by Michigan residents. This includes all vision
and dental insurance claims. Insurance carriers were permitted to collect
this tax directly from their insured employer groups. Companion Life Insurance Company has been
paying this tax each quarter since its inception while we retooled our billing
system to reflect this tax separately.
Effective July, 2013, Companion Life has added the tax
surcharge to all employer group billing notices in Michigan. The bill will include a tax surcharge of
0.72% of dental premium and 0.74% of vision premium to
estimate the 1% tax due to Michigan on claims.
Companion will then remit the tax to the state as required by Michigan
law. There will be no retroactive charge
to your clients for January 2012 through June 2013 taxes paid.
A letter of explanation has been included in each group
bill. In addition, future proposals will
reflect a footnote that explains that the State of Michigan surcharge is not
included in coverage rates within the proposal.
If you have any questions or comments, please contact your
Companion Life representative.
Trescott N. Hinton, Jr.
President, Companion Life Insurance Company
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