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HB 4208

Insurance: health benefits; exclusion of federal excepted benefits from a health insurance policy; provide for. Amends sec. 608 of 1956 PA 218 (MCL 500.608). TIE BAR WITH: HB 4207'25

2025-2026 Regular Session Introduced by Brenda Carter and 1 co-sponsor

The bill clarifies that health insurance policies do not include policies that cover only federally defined excepted benefits, aligning Michigan law with federal definitions.

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Bill Summary · HB 4208

Summary — HB 4208 (103rd Legislature)

Status: Placed on Order of Third Reading (Senate)
Introduced: March 10–11, 2025
Tie-bar: HB 4207 (both bills must be enacted for effect)
Subject: Insurance — definition of “health insurance policy” / excepted benefits

Purpose / Intent

HB 4208 amends the Insurance Code (1956 PA 218) to clarify that a “health insurance policy” does not include policies that provide only federal “excepted benefits” (as defined at 42 U.S.C. §300gg–91). The stated intent is to align Michigan’s Insurance Code with federal law and remove ambiguity that has caused confusion for insurers that provide supplemental or limited-benefit products (e.g., dental, vision, hospital indemnity, disability).

Key provisions

  • Amends MCL 500.608 (section 608 of the Insurance Code) to add that:
    • “Health insurance policy” means an expense-incurred hospital, medical, or surgical policy, certificate, or contract; and
    • A “health insurance policy” does not include a policy that provides coverage only for excepted benefits as described in 42 U.S.C. §300gg–91.
  • The bill takes effect only if HB 4207 (which makes parallel changes in Chapter 37 defining “health benefit plan”) is also enacted.

What are “excepted benefits” (federal reference)

Under 42 U.S.C. §300gg–91, excepted benefits generally include limited or supplemental coverages that are not treated as group or individual major medical plans for certain federal requirements. Examples include:
- Accident-only or disability income insurance
- Limited-scope dental or vision plans (if offered separately)
- Hospital indemnity or fixed indemnity (if independent, non‑coordinated)
- Medicare supplementals and certain supplemental military coverage (if issued as separate policies)
- Coverage issued as supplement to liability insurance; workers’ compensation; automobile medical payment insurance; on-site clinic coverage; specified-disease policies; and other similar limited benefits

Who is affected

  • Primary: insurers and producers offering supplemental, limited-scope, or stand‑alone excepted benefit products in Michigan (clarifies which products are not treated as “health insurance policies” under state law).
  • Secondary: small-employer group plans and consumers may be indirectly affected through clearer marketplace classification of products. The bill does not expand or restrict benefits themselves; it clarifies regulatory classification.

Impact and fiscal note

  • No fiscal impact on state or local government (per House/Senate fiscal analyses).
  • Regulatory effect: reduces ambiguity in application of state Insurance Code provisions to excepted-benefit products and brings Michigan definitions into alignment with federal law.

Procedural history (selected)

  • Introduced March 10–11, 2025 (Reps. Brenda Carter and Mike Harris sponsors noted in related materials).
  • Passed House April 23, 2025 (immediate effect clause included contingent on tie-bar).
  • Referred to Senate Health Policy; reported favorably by committee (Sept. 10, 2025).
  • Placed on Order of Third Reading in Senate (Sept. 11, 2025).

Stakeholder positions

  • Support: supplemental-insurance providers and industry groups (e.g., AFLAC, Chubb, American Council of Life Insurance) testified/support documents cited.
  • State Department of Insurance and Financial Services: neutral.

Notes

  • HB 4208 is a definitional/technical change; it does not itself create new benefit types or alter federal treatment of excepted benefits. Its legal effect is to ensure state statutory definitions exclude federally‑excepted products from being classified as state “health insurance policies.”

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

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