Michigan House Bill HB4732

Michigan 2023-2024 Regular Session

• Introduced: 6/13/23
• Refer: 6/13/23
• Report Pass: 6/22/23
• Engrossed: 10/12/23
• Refer: 10/17/23

Caption

Insurance: health benefits; excluding federal excepted benefits from a health insurance policy; provide for. Amends sec. 3701 of 1956 PA 218 (MCL 500.3701). TIE BAR WITH: HB 4733'23

Impact

The amendment proposed by HB 4732 is poised to enhance the regulatory framework governing health insurance in Michigan, particularly for small employers who constitute a significant portion of the workforce. By refining the definitions and conditions surrounding health benefits, the bill intends to promote higher standards of coverage and accountability among insurers serving small businesses. This can potentially lead to increased accessibility and affordability of health care for employees working in small firms, helping to bridge gaps in coverage that can occur due to varying insurance offerings.

Summary

House Bill 4732 seeks to amend the Michigan Insurance Code (1956 PA 218) by adjusting the provisions regarding health benefits offered by small employers. The bill outlines various terms related to health insurance, including definitions of carriers, eligible employees, and the types of health benefit plans that fall under this legislation. Specifically, it addresses the categorization of small employers and the bases for premium calculations as they relate to health benefit plans. HB 4732 aims to ensure that health insurance products marketed to small employers remain compliant with state standards, thus facilitating greater access to health coverage for small businesses.

Sentiment

The sentiment surrounding HB 4732 appears to be largely positive among proponents who advocate for stronger insurance regulations that protect small employers and their employees. Supporters recognize the importance of clarity and fairness in health insurance offerings, especially as businesses navigate the complexities of providing health benefits. Conversely, there may be some opposition from stakeholders who argue that increased regulation could lead to higher costs for small employers, potentially stifling business growth.

Contention

Notable points of contention include concerns about the financial burden placed on small employers due to regulatory compliance requirements and the potential for increased premium rates. Detractors may argue that while the intent of HB 4732 is to provide better oversight, the actual impact on small employers could be detrimental in terms of rising costs and reduced flexibility in health benefit offerings. This conflict underscores the delicate balance that laws like HB 4732 must strike between protecting consumers and supporting the viability of small businesses in Michigan.