Legislation addressing medical debt collection processes and hospital financial assistance policies passed the Michigan Senate, while the House of Representatives moved MHA-supported bills during the week of March 9.
The Senate voted in support of Senate Bills (SB) 449, 450 and 451 as well as SBs 701 and 702. The bipartisan three-bill package, SBs 449-451, codifies the existence of hospital financial assistance programs (FAPs), creates new reporting requirements on the benefits provided by FAPs and prohibits medical debt from being reported by credit bureaus. The bills, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), require the following:
- Hospitals to develop and implement a FAP that provides up to a 100% discount based on a sliding scale for an uninsured patient whose annual income is at or below 350% of federal poverty guidelines. The FAP must also apply to patients who owe the hospital an unpaid bill greater than 30% of their annual income.
- Hospitals to post information about the FAP on bills, invoices and the hospital website.
- Hospitals to submit an annual report to the Michigan Department of Health and Human Services (MDHHS) stating the number of applications to the hospital’s FAP and the benefits provided by the FAP in a given year.
- The state to create a process allowing hospitals to check patient income eligibility.
- Prohibits consumer reporting agencies from including medical debt in consumer credit reports.
Additionally, SBs 701-702 aim to change medical debt collection processes in the state, including restrictions on the sale of medical debt and limits on interest.
Each bill was approved by the full Senate and has been referred to the House of Representatives for further review and consideration. The MHA secured several key amendments to the legislation and will continue engaging with lawmakers as the process continues.
Additionally, the House of Representatives acted on several healthcare-related bills this week, including House Bill (HB) 4582, SB 398, and HB 5281. The full House voted 58-48 on HB 4582, sponsored by Rep. Jerry Neyer (R-Shepherd), which clarifies Michigan’s premises liability law. The bill has now been referred to the Senate for consideration. SB 398, sponsored by Sen. Joe Bellino (R-Monroe), modifies opioid treatment program requirements under the Department of Licensing and Regulatory Affairs, and was supported by the House Health Policy Committee. The Behavioral Health Integration Council previously engaged with bill sponsors on SB 398 and other opioid use disorder bills, resulting in the MHA’s support. The House Judiciary Committee also took testimony on HB 5281. The bill, sponsored by Rep. Mike Harris (R-Waterford Township), would regulate third-party litigation funding transactions and require transparency measures. The MHA supports these bills and looks forward to their progress through the legislative process.
Members with questions may contact the MHA advocacy team.