SB 266 Michigan Senate · 2025-2026 Regular Session

Human services: medical services; certain personal service agreements; allow. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 112l.

SB 266 allows individuals applying for Michigan's medical assistance program (like Medicaid) to pay family members or household members for personal care services without triggering asset divestment penalties. It creates two types of valid agreements: "qualified" (written, signed in advance) and "affirmed" (oral or partial written, with documentation), both requiring payments at fair market value. Payments under these agreements won't count as asset transfers that disqualify applicants, provided they meet specific criteria like documented service details and local rate comparisons. The bill directly affects people seeking medical assistance who rely on family caregivers instead of paid providers.
Bill status passed 3 of 5 stages cleared
Introduction
Apr 2025
Committee Review
Jun 2025
Senate Passage
Jun 2025
House Passage
Governor
Introduced Apr 29, 2025 Last action Jun 26, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Senate Introduced Bill As Passed by the Senate · 5 edits · Jun 26, 2025
MODERATE
This bill amends Michigan's Social Welfare Act to clarify rules around personal services agreements for Medicaid applicants, specifically addressing how payments for care services affect asset divestment penalties. The changes expand protections for individuals receiving care from family members or household members by establishing clearer criteria for when such payments are considered fair market value rather than disqualifying asset transfers.
Scope change
The bill applies to individuals applying for Michigan's medical assistance program (Medicaid) and their personal services agreements with family members, household members, or other persons providing care services.
DEFINITION

Added new definition for 'affirmed personal services agreement' which allows agreements that may be partially oral or written, expanding flexibility for family caregiving arrangements.

Expanded definition of 'personal services agreement' to explicitly include travel to medical appointments, social activities, financial management, and other similar services.

ELIGIBILITY

Added new provision stating that payments under qualified or affirmed personal services agreements are not considered divestments if payments are at fair market value.

REQUIREMENT

Added requirement that individuals must establish by preponderance of evidence that asset transfers were intended for fair market value or other valuable consideration, not just to qualify for medical assistance.

ENFORCEMENT

Added provision requiring the Department of Health and Human Services not to presume services provided by family or household members are gratuitous and not to apply divestment penalties for qualifying personal services agreements.

Floor votes · Senate Jun 26, 2025

How they voted

362
Passed
Total votes 38
Jun 26, 2025
D Democratic19
19 Yea
100% Yea
R Republican19
17 Yea 2 Nay
89% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
3
Committee
5
Jun 26, 2025
Committee
referred to Committee on Health Policy
lower
Jun 26, 2025
Introduced
received on 06/26/2025
lower
Jun 26, 2025
Upper · Passed
PASSED ROLL CALL # 184 YEAS 35 NAYS 2 EXCUSED 0 NOT VOTING 0
upper
Jun 5, 2025
Upper · Passed
REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)
upper
Jun 4, 2025
Committee
REFERRED TO COMMITTEE OF THE WHOLE
upper
Jun 4, 2025
Upper · Passed
REPORTED FAVORABLY WITHOUT AMENDMENT 6/3/2025
upper
Apr 29, 2025
Committee
REFERRED TO COMMITTEE ON HOUSING AND HUMAN SERVICES
upper
Apr 29, 2025
Introduced
INTRODUCED BY SENATOR KEVIN HERTEL
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Kevin Hertel
Kevin Hertel
DDemocratic
MI
12