June 8, 2010, Introduced by Reps. Ball and Corriveau and referred to the Committee on Health Policy.
A bill to amend 1980 PA 350, entitled
"The nonprofit health care corporation reform act,"
by amending section 402b (MCL 550.1402b), as amended by 1999 PA 7,
and by adding section 220.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 220. A health care corporation is subject to chapter 37A
of the insurance code of 1956, 1956 PA 218, MCL 500.3751 to
500.3767.
Sec.
402b. (1) For Except as
otherwise provided in section
3763 of the insurance code of 1956, 1956 PA 218, MCL 500.3763, for
an individual covered under a nongroup certificate or under a
certificate not covered under subsection (2), a health care
corporation may exclude or limit coverage for a condition only if
the exclusion or limitation relates to a condition for which
medical advice, diagnosis, care, or treatment was recommended or
received within 6 months before enrollment and the exclusion or
limitation does not extend for more than 6 months after the
effective date of the certificate.
(2) A health care corporation shall not exclude or limit
coverage for a preexisting condition for an individual covered
under a group certificate or as provided in section 3763 of the
insurance code of 1956, 1956 PA 218, MCL 500.3763.
(3) Notwithstanding subsection (1), a health care corporation
shall not issue a certificate to a person eligible for nongroup
coverage or eligible for a certificate not covered under subsection
(2) that excludes or limits coverage for a preexisting condition or
provides a waiting period if all of the following apply:
(a) The person's most recent health coverage prior to applying
for coverage with the health care corporation was under a group
health plan.
(b) The person was continuously covered prior to the
application for coverage with the health care corporation under 1
or more health plans for an aggregate of at least 18 months with no
break in coverage that exceeded 62 days.
(c) The person is no longer eligible for group coverage and is
not eligible for medicare or medicaid.
(d) The person did not lose eligibility for coverage for
failure to pay any required contribution or for an act to defraud a
health care corporation, a health insurer, or a health maintenance
organization.
(e) If the person was eligible for continuation of health
coverage from that group health plan pursuant to the consolidated
omnibus budget reconciliation act of 1985, Public Law 99-272, 100
Stat. 82, he or she has elected and exhausted that coverage.
(4) As used in this section, "group" means a group of 2 or
more subscribers.
Enacting section 1. This amendatory act takes effect September
23, 2010.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6240(request no.
06725'10) of the 95th Legislature is enacted into law.