WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · HB 6071

Overview

HB 6071 proposes creating the Michigan Hospital Financial Assistance Act, which would require hospitals to establish and implement formal financial assistance programs for patients. The act sets eligibility criteria, disclosure requirements, reporting obligations, and penalties, with funds directed to a new Medical Debt Relief Fund for program implementation.

Purpose and intent

  • Establish a standardized framework for hospitals to help patients who struggle with medical debt.
  • Ensure transparency about hospital financial assistance programs and help patients navigate eligibility.
  • Create a dedicated fund to relieve medical debt resulting from the administration of these programs and related penalties.

Key provisions and changes

Financial assistance program (Section 5)

  • By January 1, 2027, each hospital must develop and implement a financial assistance program for patients.
  • Eligibility and benefits must be based on objective metrics tied to federal poverty guidelines.
  • Programs must include uninsured patients who have total unpaid bills in a 12-month period exceeding 30% of the patient’s annual income.
  • For uninsured patients with income at or below 350% of the federal poverty guidelines, the program may provide up to a 100% discount (sliding scale).
  • When evaluating eligibility, programs must consider the patient’s financial resources and out-of-pocket expenses for those with health benefit plans.

Public disclosure and information accessibility (Section 7)

  • Hospitals must conspicuously publish financial assistance information on:
    • Patient bills/invoices or charge summaries.
    • Written notifications before debt is sent to collections.
    • The hospital’s website.
  • Information must be written in plain language and include:
    • How to contact the hospital regarding the program.
    • Availability in English, Spanish, and other languages as determined by the department.
    • How to file a complaint about violations of the act or related rules.

Data collection and income verification process (Section 10)

  • The Department of Health and Human Services (DHHS) must establish a uniform process to collect income information for eligibility.
  • Hospitals must follow the process; failure to provide required information constitutes an affirmative defense in related enforcement actions.
  • The department must consult with hospitals and relevant state agencies in developing the process.

Enforcement and penalties (Sections 11, 13)

-Individuals may report violations to the department, which will investigate.
- If violations are found, the department may request the attorney general to seek an injunction or other remedy.
- Hospitals violating the act face civil fines up to $10,000 per violation. The attorney general may collect fines, and proceeds go to the Medical Debt Relief Fund (see below).

Medical Debt Relief Fund (Section 17)

  • A new fund in the state treasury to receive fines and other sources of money.
  • The department administers the fund for audits and to implement programs aimed at relieving medical debt in Michigan.

Administrative and rulemaking (Section 19)

  • DHHS may promulgate rules under the Administrative Procedures Act to implement the act.

Who is affected

  • Hospitals operating in Michigan (subject to the new financial assistance requirements).
  • Uninsured and insured patients seeking care, particularly those with substantial unpaid medical bills relative to income.
  • DHHS and the attorney general’s office, which will handle enforcement, reporting, and administration of the fund.
  • Health systems with multiple hospitals may file a single annual report, but must present data for each hospital distinctly.

Procedural and timeline aspects

  • By January 1, 2027: Hospitals must develop and implement the financial assistance programs.
  • By October 1, 2027: Hospitals must submit annual reports to the DHHS Director detailing applications, benefits, and uncollected/forgiven debt.
  • DHHS will publish submitted reports publicly on its website.
  • The department will create a uniform income-verification process, with implementation to follow after rulemaking.

Potential impact

  • Increased transparency around hospital billing and financial assistance.
  • Greater access to discount programs for low- to moderate-income patients, including possible 100% relief for some uninsured individuals.
  • Administrative burden on hospitals to implement income verification and public disclosures.
  • New funding mechanism (Medical Debt Relief Fund) to support debt relief initiatives and enforcement actions.
  • Adoption of uniform statewide standards could reduce variability in financial assistance across hospitals.

If you want, I can compare this bill to existing Michigan statutes on charity care or summarize the financial implications for a hospital system.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.