MI SB1016

Establishes a 0.95% tax rate on gross direct premiums for qualified health insurance policies from January 1, 2019 through December 31, 2019, reduced from the standard 1.25% rate.

Beginning in 2020, the tax rate for qualified health insurance policies is determined annually by the Department based on a formula that maintains an $18,000,000 annual savings limit.

Defines qualified health insurance policies to include comprehensive major medical, student, children's health insurance program, Medicaid, employer comprehensive, and multiple employer association or trust policies written on Michigan risks.

Exempts insurance companies authorized under specific chapters of the insurance code, health maintenance organizations, and certain disability insurance premiums (up to $190,000,000 annually with phase-out).

Effective immediately upon approval on June 26, 2018.