What taxes and fees apply to businesses with 50 or less eligible employees?

In 2017, the following federal and state taxes and fees apply to businesses with 2-50 eligible employees:

Patient Centered Outcomes Research Institute (PCORI) fee – Funds the PCORI, which will produce and promote research on clinical effectiveness to help patients and their health care providers make more informed health care decisions; applies to fully insured and self-funded plans.

Risk Adjustment fee – An annual assessment for the administration of a risk adjustment program that will transfer funds from plans with membership that is healthier than average to those with membership that is less healthy than average, in order to reduce the impact of adverse selection; applied to non-grandfathered small groups.

Health Insurance Claims Assessment Act (HICAA) tax – A tax applied to certain health insurance claims paid for services provided on or after January 1, 2012 that helps to support Michigan’s Medicaid program; applies to fully insured and self-funded plans.


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