Legislation addressing medical debt was introduced in the Michigan Senate June 26.
The bipartisan three-bill package, Senate Bills (SB) 449, 450 and 451, codify the existence of hospital financial assistance programs (FAPs), create new reporting requirements on the benefits provided by FAPs, and prohibit medical debt from being reported by credit bureaus.
The bills, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathon Lindsey (R-Coldwater), requires 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 a patient who owes the hospital an unpaid bill greater than 30% of their annual income.
- Hospitals post information about the FAP on a bill, invoice and the hospital website.
- 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 for hospitals to check income eligibility of patients.
- Prohibits a consumer reporting agency from including medical debt in a consumer credit report.
WILX News published a story on the legislation which, included a quote from MHA CEO Brian Peters. “Affordability should never be a barrier to care. Although it may look different across organizations, Michigan hospitals are already providing financial assistance programming that has long-supported patients and communities across the state,” said Peters. “While the proposed legislation may change reporting requirements, hospitals remain committed to caring for everyone who walks through their doors.”
SBs 449-451 have been referred to the Senate Health Policy Committee for further consideration and the MHA currently has a neutral position on this legislation.
Furthermore, the Senate passed legislation to address opioid use disorders and increase coverage for prenatal services during the week of June 30.
SBs 397–405 (with the exception of SB 398) passed the Senate chamber and have now been referred to the House Insurance Committee. Collectively, these bills make numerous changes to improve coverage and access for Michiganders to receive treatment for opioid use disorders. The MHA Behavioral Health Integration Council reviewed and recommended changes for SBs 397, 398, 399, 400 and 402 – which the MHA supports.
SBs 414–415 also passed the state Senate chamber July 1. The bills, sponsored by Sen. Stephanie Chang (D-Detroit) and Sen. Ruth Johnson (R-Groveland Township), require insurer and Medicaid coverage of group prenatal services. The MHA is supportive of this legislation, as well as its House counterpart bills, House Bills (HB) 4703–4704, recently introduced by Rep. Jennifer Wortz (R-Quincy).
Lastly, SB 443 was introduced in the Senate and referred to the Committee on Regulatory Affairs. The bill, sponsored by Sen. Sean McCann (D-Kalamazoo), requires health facilities to develop a surgical smoke plume evacuation plan. The MHA opposes this bill.
Members with additional questions should contact the MHA Advocacy Team.