Healthcare (Insurance)

Michigan Senate Bill 1136 amends state law to cap the amount public employers can spend on employee health insurance, introducing new fixed dollar limits for single, couple, and family coverage starting in 2027. The bill also reverses a previous provision that allowed employers to pay no more than 80% of total medical costs, instead mandating that they pay at least 80% of those expenses beginning in the same year. These new financial caps are adjusted annually based on changes in Michigan health insurance rates or a minimum 3% increase, whichever is higher. Existing collective bargaining agreements that conflict with these limits are exempt until their current terms expire or are renegotiated.

HB 5981 requires automobile insurers in Michigan to file premium rates that achieve specific percentage reductions for personal protection insurance coverage by July 1, 2020, and maintain those reductions through 2028. The bill mandates that the state insurance director review and disapprove any filings that fail to meet these reduction targets, which vary based on the policy's coverage limits. Additionally, insurers must pass on savings from medical treatment costs incurred in accidents before July 2, 2021, and cannot issue or renew policies without director approval of their rates.

HB 5406 would prohibit Michigan health insurers from covering organ transplants if the procedure occurs in China or another country designated by the Michigan Department of Health and Human Services as engaging in forced organ harvesting, or if the organ originated from such a country. It applies to all health insurance policies issued or renewed in Michigan and requires the health department director to designate which countries fall under this prohibition. The bill defines "forced organ harvesting" as organ removal through coercion, abduction, deception, or abuse of power. This policy change would directly affect patients seeking transplants involving organs from designated countries and insurers offering coverage for such procedures.

HB 4207 amends Michigan's insurance code to exclude "federal excepted benefits" from standard health insurance coverage requirements. It changes the definition of "health benefit plan" to clarify that coverage for specific federal benefits (like certain military or Indian Health Service programs) is not required under state health insurance policies. This directly affects health insurance carriers and policyholders in Michigan by narrowing what must be included in basic health coverage under state law. The bill makes this change by updating Section 3701 of the Insurance Code to exclude these federal benefits from the definition of covered services.