The Michigan Health Insurance Claims Assessment Act is back for reconsideration before the United States Court of Appeals for the Sixth Circuit. The act imposes a tax on paid health care claims that is used to fund the state share of Michigan’s Medicaid program. The act had been upheld by the federal appeals court in 2014 against an ERISA preemption challenge brought by an organization representing self-insured group health plans and third-party administrators.

The Supreme Court recently remanded the case to the federal court of appeals for reconsideration in light of a decision holding that a Vermont all-payers claim database statute interfered with the uniform administration of ERISA plans and was therefore preempted.

Attorney Richard Kraus filed an amicus brief on behalf of a number of organizations supporting the Act, including the Michigan Health and Hospital Association, Michigan State Medical Society, Small Business Association of Michigan, Michigan Osteopathic Association, and Aging Services of Michigan. The brief argues that the Michigan act is valid under well-established Supreme Court precedent and is considerably different in purpose and effect from the Vermont statute.