Insurance: health insurers; closure or removal of health system from an insurer's network; establish procedures. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406uu.

This bill requires health insurers in Michigan to treat the closure or removal of a health system from their network as a significant event affecting coverage. It allows individuals with group disability insurance to cancel their policies without penalty if a network health system is shut down or dropped, and it mandates that insurers offer replacement coverage to those displaced by such changes. Additionally, the law ensures that any deductibles or out-of-pocket maximums paid under the original policy are credited toward the new policy. A "health system" is defined broadly to include hospitals, physician practices, and other related healthcare facilities under common ownership or control.