Michigan House Bill HB4968

Michigan 2025-2026 Regular Session

• Introduced: 9/16/25
• Refer: 9/16/25
• Engrossed: 9/25/25

Caption

Insurance: other; reporting requirements; provide for. Amends secs. 11 & 17 of 2018 PA 175 (MCL 550.1761 & 550.1767).

Impact

The primary effect of HB 4968 is the implementation of an annual assessment structure that aims to align state tax practices with federal requirements. By establishing a tax rate determined by the Department of Health and Human Services (DHHS) each year, the bill hopes to streamline the revenue collection process from insurance providers. Additionally, it mandates that revenue not exceed a specified limit for each tax year; thus, emphasizing financial prudence in state budgeting while also supporting Medicaid funding initiatives.

Summary

House Bill 4968 seeks to amend the Insurance Provider Assessment Act by altering the assessment process for insurance providers in Michigan. The bill specifically focuses on the annual assessment imposed on insurance providers based on their reported member months. The amendments aim to incorporate adjustments corresponding to federal guidelines, thereby ensuring compliance with state and federal regulations. This legislation targets insurance companies that operate Medicaid contracted health plans, health insurers, and specialty prepaid health plans, introducing tiered assessment rates based on the source of funding for each member month.

Sentiment

The sentiment surrounding HB 4968 appears to be moderately positive among supporters who view it as a necessary step towards improving the financial framework for Medicaid funding in Michigan. Proponents argue that the amendments will help stabilize funding and ensure compliance with federal rules which can enhance Medicaid's sustainability in the state. However, there are potential concerns regarding increased financial burdens on insurance providers which may be viewed negatively by critics who fear it could lead to higher insurance premiums for consumers.

Contention

Notable points of contention arise from the concern that the costs associated with these assessments may be passed down to consumers, leading to higher healthcare costs overall. Additionally, the requirement for compliance with both state and federal regulations raises questions about the administrative burden on smaller insurance providers. As the bill progresses, debates may center on finding a balance between ensuring sufficient revenue for Medicaid programs and protecting consumers from potential cost increases associated with these assessments.