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Act 233 of 1984
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PRUDENT PURCHASER ACT

Act 233 of 1984

AN ACT to authorize certain organizations to enter into prudent purchaser agreements with health care providers; to control health care costs, assure appropriate utilization of health care services, and maintain quality of health care; to provide for the regulation of certain organizations, health care providers, health care facilities, and prudent purchaser arrangements; to establish a joint legislative committee to investigate the degree of competition in the health care coverage market in this state; and to provide for the powers and duties of certain state officers and agencies.


History: 1984, Act 233, Eff. Dec. 20, 1984


© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
Section 550.51SectionShort title.
Section 550.52SectionDefinitions.
Section 550.53SectionPrudent purchaser agreement; number; location of health care provider; membership on provider panel; written standards; notice procedures; provider application period; providing standards on request; notice of acceptance or rejection; reasons for termination; professional review program; evaluation; 2 or more classes of health care providers providing same health care service; removal from provider panel; membership in more than 1 provider panel; provider panel including health care providers and facilities outside state; required information; emergency episode of illness or injury; limiting number of prudent purchaser agreements; benefits for services within scope of practice of optometry, chiropractic, or physical therapy.
Section 550.53aSectionDisclosure of financial relationships between organization and participating health care providers, health care facilities, or other entities.
Section 550.53bSectionPrudent purchaser agreement services; providing requested information to insurer.
Section 550.54SectionDiscrimination prohibited; complaint of violation; hearing; penalty.
Section 550.55SectionNotice of membership in provider panels; display.
Section 550.56SectionReporting certain information on standard forms required; availability of information to appropriate state agencies; confidentiality.
Section 550.57SectionAgreements between health care providers and purchasers of health care services.
Section 550.58SectionOrganization subject to enabling act; financial records.
Section 550.59SectionReport on competition in retail pharmacy industry.
Section 550.60SectionRepealed. 2005, Act 203, Imd. Eff. Nov. 10, 2005.
Section 550.61SectionRepealed. 1988, Act 282, Imd. Eff. July 27, 1988.
Section 550.62SectionProvisions inapplicable to certain contracts and renewal thereof.
Section 550.63SectionConditional effective date.