Michigan House Bill HB4733

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; exclusion of federal excepted benefits from a health insurance policy; provide for. Amends sec. 608 of 1956 PA 218 (MCL 500.608). TIE BAR WITH: HB 4732'23

Impact

The proposed amendment is primarily focused on adjusting the language surrounding health insurance policies, which could have significant implications for both insurance providers and consumers. By delineating what constitutes health insurance and specifying what is excluded, the bill could potentially impact how companies underwrite policies and how individuals understand their coverage. It may also lead to increased clarity regarding health benefits, as insurers and policyholders adjust to the new definitions and requirements.

Summary

House Bill 4733 aims to amend the Michigan Insurance Code of 1956 by modifying the definition and scope of health insurance. Specifically, the bill seeks to clarify that health insurance policies do not cover excepted benefits as defined in federal law (42 USC 300gg-91). This legislation is part of an effort to ensure consistent health benefit coverage across Michigan by aligning state definitions with federal standards, particularly regarding exclusions pertaining to certain health conditions or treatments.

Sentiment

The sentiment surrounding HB 4733 appears to be largely supportive among lawmakers, indicated by the robust voting outcome of 106 yeas to 4 nays during the third reading on October 12, 2023. The overwhelming approval suggests a consensus on the need to streamline health insurance definitions and practices in alignment with current federal regulations. However, there are some concerns from consumer advocacy groups regarding the potential for reduced coverage options as insurers navigate these new amendments.

Contention

Notable points of contention surrounding this bill include the possible implications for individuals who may heavily rely on certain health benefits that could now be excluded under the new definitions. Some critics fear that tightening the definitions without comprehensive review may inadvertently limit access to necessary healthcare services. Additionally, the tie-bar with House Bill 4732 indicates complexities in the legislation that may require further examination to ensure that consumer protections remain intact.