MI SB0994

Imposes an annual assessment on insurance providers (Medicaid managed care organizations and health insurers) based on member months, effective October 1, 2018 or upon federal waiver approval, whichever is later.

Establishes three assessment tiers: Tier 1 (Medicaid contracted health plans) at rates determined to achieve a 1.00-1.02 federal statistical test result plus $1.20 per member month for remaining months; Tier 2 (health insurers) at $2.40 per member month; Tier 3 (specialty prepaid health plans) at $1.20 per member month.

Creates the Insurance Provider Fund to receive all assessment revenue, with funds appropriated for Medicaid capitation rates, offsetting revenue losses from the prior health insurance claims assessment, and administrative costs.

Allocates $315,000,000 from the fund for fiscal year 2018-2019 and $240,000,000 for fiscal year 2019-2020 to offset revenue losses from the repealed health insurance claims assessment.

Authorizes the Department of Treasury to administer the assessment, requiring quarterly payments from providers, and allows the Department of Insurance and Financial Services to suspend or revoke licenses of providers that fail to pay assessments, interest, or penalties.