HOUSE BILL No. 5839

February 17, 2010, Introduced by Rep. Marleau and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 3406s.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3406s. (1) An expense-incurred hospital, medical, or

 

surgical policy or certificate delivered, issued for delivery, or

 

renewed in this state that provides dental coverage and a health

 

maintenance organization individual or group contract that provides

 

dental coverage shall not require that services provided by a

 

dentist be provided at a fee set by the insurer or health

 

maintenance organization, except for covered services provided to a

 

covered individual under the policy, certificate, or contract.

 

     (2) An insurer and a health maintenance organization shall not

 

impose a deductible, copayment, coinsurance, or any other

 


requirement in such a way as to provide de minimis reimbursement

 

and avoid the impact of this section. The commissioner shall

 

investigate and issue a ruling on all complaints arising under this

 

section.

 

     (3) As used in this section, "covered services" means those

 

health care services for which reimbursement is available under the

 

policy, certificate, or contract and those health care services for

 

which reimbursement is not available due only to an unexpired

 

waiting period, an annual or lifetime limitation, monetary or

 

frequency limitation, or other limitation applicable to the

 

coverage for the service. Covered services do not include any of

 

the following:

 

     (a) A service selected by the patient requiring the use of

 

material different than those covered by the policy, certificate,

 

or contract and with a cost higher than the amount the policy,

 

certificate, or contract would provide for reimbursement for that

 

service, provided that the dentist has requested the patient to pay

 

the amount by which the cost of the service exceeds reimbursement

 

under the policy, certificate, or contract and the patient has

 

agreed to pay the excess to the dentist.

 

     (b) A service subject to a copayment obligation greater than

 

50%.

 

     (c) A service subject to the satisfaction of a deductible

 

amount greater than $20.00 per service or any annual or other

 

deductible amount that the insurer or health maintenance

 

organization reasonably knows will not be met by at least 50% of

 

those subject to the deductible requirement.

 


     Enacting section 1. This amendatory act applies to a policy,

 

certificate, or contract entered into after the date this

 

amendatory act is enacted into law. For a policy, certificate, or

 

contract in effect on or before the date this amendatory act is

 

enacted into law, this amendatory act applies on the date the

 

policy, certificate, or contract is next extended, renewed, or

 

modified in any manner.