HOUSE BILL NO. 5972

September 26, 2024, Introduced by Reps. Brabec, Steckloff, McFall, Paiz, Brixie, MacDonell, Martus, Skaggs, Edwards, Dievendorf, Morgan, Price, Rheingans, Hood, Wozniak, Wilson, O'Neal, McKinney, Rogers and Scott and referred to the Committee on Insurance and Financial Services.

A bill to amend 1984 PA 218, entitled

"Third party administrator act,"

(MCL 550.901 to 550.960) by adding section 33.

the people of the state of michigan enact:

Sec. 33. (1) A third party administrator shall not enter into a service contract for a benefit plan if the benefit plan includes a health care service as a covered health care benefit and the copayment or coinsurance for the health care service payable by the covered individual is greater than 50% of the cost of the health care service.

(2) The director of the department shall investigate and issue a ruling on all complaints arising under this section.

Enacting section 1. This amendatory act applies to a service contract entered into after the date this amendatory act is enacted into law. For a service contract in effect on or before the date this amendatory act is enacted into law, this amendatory act applies on the date the service contract is next extended, renewed, or modified.