INSURANCE GRIEVANCE PROCEDURE                                                              S.B. 1308:

                                                                                               COMMITTEE SUMMARY

 

 

 

 

 

 

 

 

 

 

 

Senate Bill 1308 (as introduced 9-25-12)

Sponsor:  Senator Jim Marleau

Committee:  Insurance

 

Date Completed:  9-27-12

 

CONTENT

 

The bill would amend the Insurance Code to revise requirements for the grievance procedure that a health insurer or health maintenance organization (HMO) must establish.

 

The Code requires each insurer and HMO to establish an internal formal grievance procedure for individuals covered under a policy, certificate, or contract.  The procedure must provide for the right of an insured or enrollee to appear before the board of directors or a designated committee, or the right to a managerial level conference, to present a grievance.

 

The bill would eliminate the references to the board of directors and a managerial level conference.  Instead, the grievance procedure would have to provide for the right of an insured or enrollee to appear before a designated person or committee.

 

("Grievance" means a complaint on behalf of an insured or enrollee submitted by an insured or enrollee concerning any of the following:

 

 --    The availability, delivery, or quality of health care services.

 --    Benefits or claims payment, handling, or reimbursement for health care services.

 --    Matters pertaining to the contractual relationship between an insured or enrollee and the insurer or HMO.)

 

MCL 500.2213                                                              Legislative Analyst:  Julie Cassidy

 

FISCAL IMPACT

 

The bill would have no fiscal impact on State or local government.

 

                                                                                        Fiscal Analyst:  Josh Sefton

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.