Human services: medical services; definition of kickbacks or bribes; modify. Amends sec. 4 of 1977 PA 72 (MCL 400.604).

2025-2026 Regular Session Introduced by Jennifer Conlin and 11 co-sponsors

Michigan HB 6107 strengthens penalties for kickbacks in Medicaid, making them felonies, while explicitly exempting CMS-approved model arrangements and patient incentives.

placed on third reading

#humanservices:medicalservices

Overview

HB 6107, introduced in the Michigan House of Representatives for the 2025-2026 session, amends section 4 of the Medicaid False Claim Act (1977 PA 72, MCL 400.604). The bill clarifies and broadens penalties for kickbacks and bribes related to goods and services paid for under social welfare programs, while explicitly excluding model arrangements and patient incentive programs sponsored by the Centers for Medicare and Medicaid Services (CMS) from being considered kickbacks or bribes.

Purpose and intent

Strengthen anti-kickback provisions in Michigan’s Medicaid false claim framework.

Ensure individuals who solicit, offer, or receive kickbacks or bribes connected to goods or services paid under public welfare programs can be prosecuted as felons.

Provide a specific carve-out for CMS-approved model arrangements and patient incentive programs to avoid penalizing legitimate CMS-promoted activities.

Key provisions

Prohibited conduct:

Soliciting, offering, or receiving a kickback or bribe in connection with furnishing goods or services for which payment is or may be made under a program established under the state social welfare act (Public Act 280 of 1939, MCL 400.1 to 400.119b).
Receiving a rebate of a fee or charge for referring an individual to another person for the furnishing of such goods and services.

Penalties:

Felony offense.
Imprisonment: up to 4 years.
Fine: up to $30,000, or both imprisonment and fine.

Carve-out:

Model arrangements and model patient incentives authorized and sponsored by CMS do not constitute kickbacks or bribes under this section.

Who/what is affected

Individuals and entities involved in the provision of goods or services paid, in whole or in part, by Michigan’s Medicaid or other public welfare programs.

Parties who solicit, offer, or accept kickbacks or referral rebates related to such goods and services.

CMS-approved model arrangements and patient incentive programs are exempt from the kickback/bribe designation.

Procedural and timeline aspects

Referral to: Committee on Health Policy (as of the 2026 action history).

Status: Introduced and assigned to committee; a bill’s progress would follow standard committee review, possible amendments, and potential floor consideration.

Effective date: Not specified in the text provided; typical enactment would depend on the legislative process and governor’s signature.

Practical impact

Provides a clearer pathway to prosecute kickback and referral rebate schemes tied to publicly funded health services.

Aligns Michigan’s statute with CMS model programs by explicitly permitting CMS-authorized arrangements to avoid triggering penalties under this act.

Could deter improper financial incentives in Medicaid-related service delivery and referrals, potentially increasing program integrity and reducing fraudulent billing practices.

Bill