HOUSE BILL No. 4058

 

January 13, 2011, Introduced by Rep. Callton and referred to the Committee on Health Policy.

 

     A bill to amend 1984 PA 218, entitled

 

"Third party administrator act,"

 

(MCL 550.901 to 550.960) by adding section 33.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 33. (1) A third party administrator shall not enter into

 

a service contract for a benefit plan if the benefit plan includes

 

a health care service as a covered health care benefit and either

 

of the following applies to the benefit plan:

 

     (a) The copayment or coinsurance for the benefit plan payable

 

by the covered individual is greater than 50% of the cost of the

 

health care service.

 

     (b) The deductible for a health care service payable by the

 

covered individual meets either of the following:

 

     (i) Is established in such a way as to provide de minimus

 


reimbursement for the service.

 

     (ii) Has an annual or other deductible amount that the plan

 

sponsor reasonably knows will not be met by at least 80% of the

 

covered individuals.

 

     (2) The commissioner shall investigate and issue a ruling on

 

all complaints arising under this section.

 

     Enacting section 1. This amendatory act applies to a service

 

contract entered into after the date this amendatory act is enacted

 

into law. For a service contract in effect on or before the date

 

this amendatory act is enacted into law, this amendatory act

 

applies on the date the service contract is next extended, renewed,

 

or modified in any manner.