Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0530

Introduced
9/26/23  
Refer
9/26/23  
Report Pass
10/19/23  
Refer
10/19/23  
Report Pass
10/19/23  
Engrossed
10/24/23  

Caption

Insurance: no-fault; treatment and services for injuries; revise limitations on charges. Amends sec. 3157 of 1956 PA 218 (MCL 500.3157). TIE BAR WITH: SB 0531'23

Impact

SB0530 has the potential to significantly affect the dynamics of how healthcare providers in Michigan handle billing for accident-related treatments. By setting specified percentages of reimbursement relative to Medicare rates, the bill aims to provide clearer guidelines and transparency in costs for injured individuals and insurance companies. It raises concerns for some providers who fear that these limits could hinder their financial viability, particularly those offering specialized services in rehabilitation or hospitals treating higher volumes of indigent patients.

Summary

Senate Bill 0530 amends section 3157 of the Michigan insurance code, focusing on the regulation of charges related to treatment and services for injuries under personal protection insurance. The bill outlines reimbursement limits for healthcare providers, including physicians, hospitals, and clinics that offer treatment for accidental bodily injuries. These limits are framed as a percentage of the amounts that are payable under the Medicare program, aiming to standardize the costs associated with these treatments and prevent overcharging by service providers.

Sentiment

The sentiment surrounding SB0530 is mixed among stakeholders. Proponents argue that the bill brings much-needed clarity and fairness to insurance billing practices, benefiting consumers by keeping treatment costs down while allowing easier access to necessary medical services. However, opponents express apprehension that the fixed limits on reimbursements may lead to inadequate compensation for providers, potentially resulting in reduced service availability or encountering challenges for those serving low-income patients disproportionately.

Contention

Notable points of contention in discussions around SB0530 include the balance between capping prices for healthcare services and ensuring fair compensation for providers. Specific thresholds for reimbursements, especially concerning specialized rehabilitation services, underscore debates about the adequacy of financial support within the healthcare system. Furthermore, the correlation between treatment types and reimbursement limitations raises questions about equity, particularly for different regions of the state, where healthcare service availability and quality may vary.

Companion Bills

MI SB0531

Same As Insurance: no-fault; cross-reference to amended section of the insurance code; revise. Amends sec. 2111f of 1956 PA 218 (MCL 500.2111f). TIE BAR WITH: SB 0530'23

Previously Filed As

MI HB4884

Insurance: no-fault; treatment and service for injuries; revise standards and procedures for utilization reviews. Amends sec. 3157a of 1956 PA 218 (MCL 500.3157a).

MI HB4493

Insurance: no-fault; fee schedules; make inapplicable for overdue benefits. Amends sec. 3157 of 1956 PA 218 (MCL 500.3157).

MI SB1090

Insurance: no-fault; utilization reviews; require compliance with decision on appeal. Amends sec. 3157a of 1956 PA 218 (MCL 500.3157a).

MI HB4687

Insurance: no-fault; choice of either an independent medical exam or a utilization review; require. Amends secs. 3151 & 3157a of 1956 PA 218 (MCL 500.3151 & 500.3157a).

MI SB0531

Insurance: no-fault; cross-reference to amended section of the insurance code; revise. Amends sec. 2111f of 1956 PA 218 (MCL 500.2111f). TIE BAR WITH: SB 0530'23

MI HB6251

Insurance: no-fault; coverage and benefits for caregiver reimbursement; modify. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3157c.

MI SB0793

Insurance: no-fault; catastrophic claims association; make miscellaneous operational amendments. Amends secs. 134 & 3104 of 1956 PA 218 (MCL 500.134 & 500.3104). TIE BAR WITH: SB 0794'24

MI HB4565

Insurance: no-fault; independent medical examinations; create an oversight board and provide for the appointment of independent examiners. Amends secs. 3151 & 3153 of 1956 PA 218 (MCL 500.3151 & 500.3153) & adds sec. 3151a.

MI HB5057

Insurance: no-fault; option to exclude work loss benefits; expand. Amends sec. 3107 of 1956 PA 218 (MCL 500.3107).

MI SB0904

Insurance: no-fault; personal protection insurance benefits; revise definitions in section because of other amendments. Amends sec. 3107c of 1956 PA 218 (MCL 500.3107c). TIE BAR WITH: SB 0905'24

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