House Passes Multiple Healthcare Bills

The Michigan House passed legislation related to third-party litigation financing, Medicaid prescription requirements and surgical smoke plume evacuation during the week of May 11. Lawmakers also introduced legislation related to behavioral health transportation services and prescription drug price transparency.

The House passed House Bill (HB) 5281, sponsored by Rep. Mike Harris (R-Waterford), which would establish new transparency requirements for third-party litigation financing. Currently, private equity and other investors may fund litigation against hospitals and other entities without disclosure requirements. The legislation would place limitations on those investments and increase transparency in the process. The MHA supports the legislation as it moves to the Senate for consideration.

The House also passed HB 4839, sponsored by Rep. Sarah Lightner (R-Springport). The bill would require Michigan’s Medicaid program to prioritize generic and biosimilar drugs over brand-name medications when medically appropriate. HB 4779 also passed the House with immediate effect. The bill would require hospitals and health facilities that provide surgical services to install surgical smoke plume evacuation systems. Sponsored by Rep. Pauline Wendzel (R-Watervliet), the legislation now heads to the Senate for consideration.

Lastly, HBs 59435944 were introduced by Reps. Steve Frisbie (R-Battle Creek) and Amos O’Neal (D-Saginaw). The bills would establish a licensure structure for behavioral health transportation services in Michigan and require Medicaid coverage for those services. This legislation mirrors previously introduced Senate Bills 927928. The MHA supports the legislation as it moves through the legislative process. HB 5941, sponsored by Rep. Karl Bohnak (R-Deerton), was also introduced. The bill would require pharmaceutical companies to report prescription drug costs to the state and disclose pricing data to the Michigan Department of Insurance and Financial Services before implementing significant price increases.

Members with questions may contact the MHA advocacy team.

Senate Introduces Legislation on Behavioral Health Transport Vehicles

Michigan’s behavioral health system has long faced a critical transportation gap — and the MHA is supporting efforts to close it.

The Michigan Legislature introduced two bills last week that represent a significant step forward for patients in crisis and the hospitals caring for them. Senate Bill (SB) 928 would create a licensure structure for Behavioral Health Transport (BHT) vehicles, while SB 927 would establish a reimbursement mechanism for their services.

The Problem

Michigan currently has two categories of medical transport: Non-Emergency Medical Transport (NEMT), designed for predictable, scheduled trips such as outpatient appointments; and Emergency Medical Transport (EMT) via ambulance, designed for acute physical health emergencies. Neither of these options is well-suited for individuals experiencing a behavioral health crisis.

Patients in crisis cannot schedule their need for transport in advance — as NEMT requires — yet more than 99% do not require the level of medical intervention an ambulance provides. Michigan has seen a 65.5% increase in transports for patients in a mental health crisis over the past five years, placing increased strain on fragile Emergency Medical Services (EMS) systems.

The consequences are real. Hospitals report patients waiting 48–72 hours for transport to psychiatric beds, with confirmed placements lost because transport could not be arranged in time. EMS providers are being pulled away from the high-acuity medical emergencies their training and equipment are designed for – and because BHT services have been operating under different licenses, they have not been able to secure Medicaid reimbursement.

What BHT Offers

BHT vehicles are built for patients in crisis, featuring a number of safety features for both the patient and the driver. BHT units operate with consistent availability and pick-up can typically be arranged within hours of a request. Early adopters cite a strong preference for BHT over ambulance transport, reporting a calmer environment, reduced stigma and greater dignity for individuals in crisis.

The Legislative Solution

SB 928 creates a licensure structure for BHT vehicles, establishing the regulatory foundation needed to define and recognize this new category of certified transport. SB 927 builds on that foundation by creating a reimbursement mechanism, enabling BHT providers enrolled with the MDHHS to bill for services and ending the current dynamic in which hospitals are financially penalized for choosing the safer, more appropriate option.

For more information or to share feedback on these bills, members should contact the MHA Advocacy Team.