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HB 5173

Health facilities: hospitals; require hospitals to provide information on health insurance enrollment process for newborns; provide for. Amends sec. 20165 of 1978 PA 368 (MCL 333.20165) & adds sec. 21537.

2023-2024 Regular Session Introduced by Noah Arbit and 16 co-sponsors

Hospitals must give parents or guardians a state-developed info sheet on newborn insurance enrollment when the baby has no coverage at birth, to speed enrollment and curb bills.

assigned PA 250'24
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Bill Summary · HB 5173

HB 5173 — Summary (Public Act 250 of 2024)

Topic: Newborn insurance enrollment information; hospitals required to provide informational document.

Statutes amended / added
- Amends: MCL 333.20165 (Part 215 — Hospitals, Public Health Code)
- Adds: MCL 333.21537 (new section requiring hospitals to provide newborn insurance information)

Main purpose

To ensure parents/guardians of newborns born in hospitals receive clear, state-developed information about the process and timelines for enrolling a newborn in a health benefit plan, with the intent of reducing unexpected medical bills and preventing avoidable gaps in coverage.

Key provisions

  • The Department of Insurance and Financial Services (DIFS), in consultation with the Department of Health and Human Services (DHHS), must develop and make available to hospitals an informational document describing the insurance enrollment process for newborn coverage (MCL 333.21537(2)).
  • If a live child is born in a hospital and that child is not covered under a health benefit plan at the time of birth, the hospital must provide the informational document to the child’s parent or guardian (MCL 333.21537(1)).
  • “Health benefit plan” is defined elsewhere in the Public Health Code (Sec. 24502) to include individual or group hospital/medical/surgical policies or certificates, HMO contracts, and self‑funded government plans.

Who is affected

  • DIFS and DHHS: responsible for developing and consulting on the informational document.
  • Hospitals licensed under Part 215: required to deliver the document to parents/guardians when a newborn lacks coverage.
  • Parents/guardians of newborns: recipients of the information; intended beneficiaries to help enroll newborns timely.
  • Health insurers/health benefit plans: indirectly affected because more timely enrollment may increase covered claims for newborn care.

Fiscal and implementation notes

  • Fiscal impact: Legislature’s nonpartisan analyses estimate a small, negative fiscal impact on DIFS due to added administrative duties; costs are expected to be minimal and likely absorbable within existing appropriations. No significant fiscal impact on local governments or hospitals was projected.
  • Effective date (as enacted): law assigned PA 250’24; approved by Governor Jan 21, 2025; effective April 2, 2025.
  • No specific civil or administrative penalties are added to the new section for hospitals that fail to provide the document.

Legislative history and related bills

  • Introduced Oct 17, 2023 (Rep. Kara Hope) as HB 5173 (H‑3 substitute adopted); passed House June 26, 2024; passed Senate Dec 19, 2024; enrolled and approved Jan 21, 2025.
  • Companion: SB 1810.
  • Supporters during committee consideration included DIFS, Michigan League for Public Policy, Michigan Nurses Association, and others.

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

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