Michigan Blue Cross Agrees to Freeze Medigap Rates

[insurance0707]

The Blue Cross policyholders have to pay it. I just got a letter letting me know it would be on my next premium notice/bill. In all fairness, it might be other insurance companies that are also collecting this tax, I have my medical coverage with Blue Cross and they sent me a letter letting me know about this new tax and it would be added to my health premium

 

[somarco]

The 1% is probably an add-on premium tax to be assessed on all policyholders with all carriers with the money going to state coffers.

Premium taxes are embedded. Policyholders won't know about them.

 

[insurance0707]

No they're telling all policyowners about the tax, it's to help pay the claims for medicaid people. It's in the paper, it's in our premium notices, it's a bunch of crap really. I thought our taxes were to pay for the medicaid people but then were taxed on our health insurance premiums also to fund the claims for the medicaid program

 

[somarco]

There is always a premium tax, and not just on health insurance. Most of the time it is around 2%. In most states it is one of the top 3 sources of revenue.

The premium tax goes to pay for a lot of things including risk pool, states portion of Medicaid, and if anything is left over it goes in to the general revenue pool.

 

[GreenSky]

There is always a premium tax, and not just on health insurance. Most of the time it is around 2%. In most states it is one of the top 3 sources of revenue.

The premium tax goes to pay for a lot of things including risk pool, states portion of Medicaid, and if anything is left over it goes in to the general revenue pool.

CA has a pretty high premium tax. Is that why our state has so much surplus money?

Rick

 

[djs]

[FONT=Verdana, Arial, Helvetica, sans-serif]Our BCBS of MI is a not for profit corporation and that being said BCBS of MI along with our state attorney general uses that fact to take advantage of the other BCBS of MI policy holders.....[/FONT]

What does being a 'not for profit corporation' have to do with anything? It definitely doesn't mean rates are necessarily lower. It doesn't mean there is less fraud. It just means they use that for marketing purposes and funnel the money elsewhere.

A not for profit that pays for-profit organizations (insurance paying doctors) has, by necessity, very little meaning in real life.

Dan

 

[somarco]

CA has a pretty high premium tax. Is that why our state has so much surplus money?

Virgin Islands should have a lot of xs cash laying around.

https://www.nationalwesternlife.com/beacon/agents/statepremiumtax.asp