HOUSE BILL No. 5096

 

June 16, 2009, Introduced by Reps. Meadows and Sheltrown and referred to the Committee on Health Policy.

 

     A bill to amend 1980 PA 350, entitled

 

"The nonprofit health care corporation reform act,"

 

(MCL 550.1101 to 550.1704) by adding section 416e.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 416e. A health care corporation that issues or renews in

 

this state on or after January 1, 2010 a group certificate shall

 

provide for both of the following:

 

     (a) That cost-sharing requirements and benefit or service

 

limitations for outpatient biologically based mental illness

 

services do not place a greater financial burden on the member and

 

are not more restrictive than those requirements and limitations

 

for outpatient medical services.

 

     (b) That cost-sharing requirements and benefit or service

 

limitations for inpatient hospital biologically based mental

 


illness services do not place a greater financial burden on the

 

member and are not more restrictive than those requirements and

 

limitations for inpatient hospital medical services.

 

     (2) Subsection (1) applies if both of the following are met:

 

     (a) The biologically based mental illness is clinically

 

diagnosed by a mental health professional.

 

     (b) The prescribed treatment is not experimental or

 

investigational, having proven its clinical effectiveness in

 

accordance with generally accepted medical standards.

 

     (3) Subsection (1) does not apply to a health care corporation

 

to which all of the following apply:

 

     (a) The health care corporation submits documentation

 

certified by an independent member of the American academy of

 

actuaries to the commissioner showing that incurred claims for

 

diagnostic and treatment services for biologically based mental

 

illness for a period of at least 6 months independently caused the

 

health care corporation's costs for claims and administrative

 

expenses for the coverage of all other physical diseases and

 

disorders to increase by more than 1% per year.

 

     (b) The health care corporation submits a signed letter from

 

an independent member of the American academy of actuaries to the

 

commissioner opining that the increase described in subdivision (a)

 

could reasonably justify an increase of more than 1% in the annual

 

premiums or rates charged by the health care corporation for the

 

coverage of all other physical diseases and disorders.

 

     (c) The commissioner, pursuant to the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, makes

 


the following determinations from the documentation and opinion

 

submitted pursuant to subdivisions (a) and (b):

 

     (i) Incurred claims for diagnostic and treatment services for

 

biologically based mental illnesses for a period of at least 6

 

months independently caused the health care corporation's costs for

 

claims and administrative expenses for the coverage of all other

 

physical diseases and disorders to increase by more than 1% per

 

year.

 

     (ii) The increase in costs reasonably justifies an increase of

 

more than 1% in the annual premiums or rates charged by the health

 

care corporation for the coverage of all other physical diseases

 

and disorders.

 

     (4) This section does not prohibit a health care corporation

 

from doing any of the following:

 

     (a) Negotiating separately with mental health care providers

 

on reimbursement rates and the delivery of health care services.

 

     (b) Offering certificates that provide benefits solely for the

 

diagnosis and treatment of biologically based mental illnesses.

 

     (c) Managing the provision of benefits for the diagnosis or

 

treatment of biologically based mental illnesses through the use of

 

preadmission screening, by requiring prior authorization before

 

treatment, or through the use of any other mechanism designed to

 

limit coverage to that treatment that is determined to be

 

necessary.

 

     (d) Enforcing the terms and conditions of the certificate.

 

     (5) This section does not apply to any certificate that

 

provides coverage for medicare supplement.

 


     (6) As used in this section:

 

     (a) "Biologically based mental illness" means schizophrenia,

 

schizoaffective disorder, major depressive disorder, bipolar

 

disorder, paranoia and other psychotic disorders, obsessive-

 

compulsive disorder, and panic disorder, as those terms are defined

 

in the diagnostic and statistical manual of mental disorders

 

published by the American psychiatric association.

 

     (b) "Mental health professional" means any of the following:

 

     (i) A physician licensed to practice medicine or osteopathic

 

medicine and surgery in this state under article 15 of the public

 

health code, 1978 PA 368, MCL 333.16101 to 333.18838.

 

     (ii) A psychologist licensed to practice in this state under

 

article 15 of the public health code, 1978 PA 368, MCL 333.16101 to

 

333.18838.

 

     (iii) A master's social worker licensed under article 15 of the

 

public health code, 1978 PA 368, MCL 333.16101 to 333.18838.

 

     (iv) A professional counselor licensed under article 15 of the

 

public health code, 1978 PA 368, MCL 333.16101 to 333.18838.