Michigan Senate Bill SB0635

Michigan 2023-2024 Regular Session

• Introduced: 11/1/23
• Refer: 11/1/23
• Report Pass: 3/14/24
• Refer: 3/14/24
• Report Pass: 6/25/24
• Engrossed: 6/26/24
• Refer: 6/26/24

Caption

Insurance: health benefits; certification for qualified health plan and qualified dental plan; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406mm. TIE BAR WITH: SB 0633'23

Impact

If passed, this legislation would significantly impact the state's insurance landscape. By clarifying the roles and responsibilities of the Director regarding the certification of health plans, the bill seeks to enhance the regulatory framework governing health insurance in Michigan. It would facilitate access to affordable health care options for residents while ensuring that providers adhere to stricter certification requirements to guarantee quality and compliance. Additionally, this could potentially influence how health plans are offered and marketed across the state.

Summary

Senate Bill 635 aims to amend the Insurance Code of 1956 by introducing section 3406mm, which relates to the certification of qualified health plans and qualified dental plans. The bill mandates that the Director of Insurance will contract with the Michigan Health Insurance Exchange to ensure these plans meet established criteria under both state and federal laws. This legislation is designed to streamline the certification process for health care providers and ensure compliance with applicable regulatory standards.

Sentiment

The sentiment surrounding SB 635 appears to be cautiously optimistic, with support primarily coming from health care advocates who argue that the certification process will help ensure more rigorous standards for health plans. However, some industry stakeholders express concerns over additional regulatory burdens and the possible implications of relying on state certification as a gatekeeping mechanism for health insurance availability. As such, the discussions are mixed, with a focus on balancing regulatory oversight with market accessibility.

Contention

A point of contention arises from the bill's requirement that it does not limit the Director's authority to regulate the business of insurance, which some critics argue could lead to excessive regulation that stifles competition among health insurance providers. The need for interrelation with Senate Bill 633 adds another layer of complexity to the legislative process, requiring careful navigation of both bills' implications in relation to existing laws governing health insurance.