Michigan House Bill HB5346

Michigan 2023-2024 Regular Session

• Introduced: 11/14/23
• Refer: 11/14/23

Caption

Insurance: health insurers; certain annual reports of health insurers relating to mental health parity; require. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406cc.

Impact

The bill's implementation is expected to enhance transparency and accountability among health insurers regarding mental health and substance use disorder treatments. By requiring detailed reporting, it ensures that insurers substantiate their compliance with mental health parity laws. This could lead to improved access to mental health services, as insurers would need to justify their treatment limitations and ensure they are not discriminatory compared to physical health coverage.

Summary

House Bill 5346 aims to amend the insurance code of Michigan by introducing section 3406cc, stipulating that health insurers must submit an annual report by March 1st each year, starting in 2025. This report is intended to provide comparative analyses and information regarding nonquantitative treatment limitations affecting mental health and substance use disorder benefits. The requirements align with regulations set forth in 42 USC 300gg-26(a)(8)(A), which mandates mental health parity in insurance coverage.

Contention

While the bill is largely viewed as a positive step toward ensuring equitable treatment in healthcare, some stakeholders may raise concerns about the potential administrative burden it places on insurers. There might be fear among healthcare providers that strict reporting requirements could lead to increased costs, which they may pass onto consumers. Additionally, debates may surface regarding the adequacy of the information required in reports to truly reflect the nuances of mental health and substance use treatment needs.