Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0636

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  

Caption

Insurance: health insurers; health insurance policy; include provision related to Michigan health insurance exchange act. Amends sec. 2212a of 1956 PA 218 (MCL 500.2212a). TIE BAR WITH: SB 0633'23

Impact

The introduction of SB0636 will directly influence existing regulations concerning the delivery of health insurance policies. It stipulates specific requirements for insurers relating to clarity, completeness, and accessibility of policy summaries that must be conveyed to applicants and insured individuals within designated time frames. This reflects an advancement in consumer protection within state law while aligning with federal guidelines laid out by the Department of Health and Human Services regarding health insurance exchanges. The bill’s emphasis on clarity also has the potential to reduce the complexity that often leads to consumer confusion in the health insurance market.

Summary

Senate Bill 0636 aims to amend the 1956 Insurance Code of Michigan by requiring insurers to provide a clear and comprehensive summary of health insurance policies in plain English. This summary is designed to enhance consumer understanding of insurance terms, coverage details, and cost-sharing obligations. By mandating that insurers present this information uniformly, the bill seeks to empower consumers to make better-informed decisions regarding their health insurance options. It is anticipated to impact both policy providers and recipients significantly, as it heightens the obligation of insurers to communicate policy details transparently.

Sentiment

The sentiment surrounding SB0636 appears largely supportive among consumer advocacy groups and health policy experts, who see it as a necessary step towards enhancing transparency in the health insurance sector. While some insurers may view the additional requirements as burdensome, the overall narrative favors the empowerment of consumers through clearer communication. The discussions around this bill have predominantly focused on the importance of understanding health insurance documents in a landscape where many find the current policies difficult to navigate.

Contention

Notable points of contention arise regarding the balancing act between increased disclosure requirements for insurers and the potential for operational challenges. Opponents express concerns that the implementation of these mandates could impose additional administrative burdens on insurance companies, potentially leading to higher costs that may be passed onto consumers. Furthermore, there are discussions about ensuring that the required plain English summaries do not oversimplify complex health coverage issues, thereby failing to provide essential details that informed decisions rely on.

Companion Bills

MI SB0633

Same As Insurance: health insurers; state-based insurance exchange; provide for. Creates new act. TIE BAR WITH: SB 0637'23

Previously Filed As

MI SB0356

Insurance: health insurers; summary of benefits and coverage provided to insureds; modify. Amends sec. 2212a of 1956 PA 218 (MCL 500.2212a).

MI SB0634

Insurance: health insurers; updated references to reflect the enactment of the Michigan health insurance exchange act; provide for. Amends secs. 1261, 1262, 1262a & 1264 of 1956 PA 218 (MCL 500.1261 et seq.). TIE BAR WITH: SB 0633'23

MI HB4707

Insurance: health insurers; coverage for intermediate and outpatient care for substance use disorder; modify. Amends secs. 2212e & 3425 of 1956 PA 218 (MCL 500.2212e & 500.3425).

MI SB0633

Insurance: health insurers; state-based insurance exchange; provide for. Creates new act. TIE BAR WITH: SB 0637'23

MI SB1126

Insurance: health insurers; coverage for intermediate and outpatient care for substance use disorder; modify. Amends secs. 2212e & 3425 of 1956 PA 218 (MCL 500.2212e & 500.3425).

MI SB0678

Insurance: health insurers; invoking suicide clauses in insurance policies; prohibit if in compliance with death with dignity act. Amends secs. 3905 & 4037 of 1956 PA 218 (MCL 500.3905 & 500.4037) & adds sec. 3406rr. TIE BAR WITH: SB 0681'23

MI HB5339

Insurance: health insurers; coverage for step therapy; modify. Amends sec. 3406t of 1956 PA 218 (MCL 500.3406t).

MI SB0921

Insurance: health insurers; health insurance mandate review commission; establish. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3478.

MI SB0135

Insurance: health insurers; compliance with affordable care act coverage; modify. Amends secs. 3403, 3406z, 3406bb & 3406ii of 1956 PA 218 (MCL 500.3403 et seq.).

MI AB493

Health insurance.

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