The assessment is intended to raise $400 million
LANSING (AP) -- Michigan residents with health insurance could get hit this fall with a premium increase tied to a new assessment on health insurance claims.
The assessment is intended to raise $400 million the state can use to draw $800 million in federal funds for Medicaid, two-thirds of which is paid for by the federal government.
Not passing the assessment could tear a $1.2 billion hole in the Medicaid budget, which provides health care for nearly two million low-income Michigan residents, most of them children, seniors, pregnant women or people with disabilities.
The one percent fee is likely to be felt by consumers. Blue Cross Blue Shield of Michigan estimates the fee would cost its customers more than $100 million annually.
The legislation passed the Senate but must still pass the House.
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