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HB 5971

Insurance: health benefits; health care benefits that require certain deductibles or copays; provide for certain restrictions on whether health care service can be listed as a health care benefit. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406jj.

2023-2024 Regular Session Introduced by Felicia Brabec and 19 co-sponsors

Michigan bill restricts insurers from listing healthcare benefits with cost-sharing as covered benefits, aiming to prevent misleading marketing of plans with deductibles or copayments.

bill electronically reproduced 09/26/2024
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Bill Summary · HB 5971

Legislative bill overview

HB 5971 amends Michigan's insurance law to restrict how health insurers can classify and market healthcare services that involve deductibles or copayments. The bill specifically limits whether certain health care services can be advertised or listed as covered benefits if they require out-of-pocket costs, though the specific services targeted are not detailed in the bill summary provided.

Why is this important

This regulation directly affects how health insurance plans are presented to consumers and could influence purchasing decisions by preventing insurers from prominently featuring services with cost-sharing requirements. The restriction may increase transparency in insurance marketing, but could also limit insurers' flexibility in plan design and potentially affect premium pricing structures.

Potential points of contention

  • Consumer confusion vs. marketing freedom: Whether restricting how benefits are listed actually clarifies coverage for consumers or improperly limits insurers' ability to accurately describe their plans
  • Insurance market impact: Uncertainty about whether these restrictions could force premium increases or reduce plan options if insurers restructure their offerings in response
  • Definition clarity: The bill's language about "certain restrictions" and "certain deductibles or copays" lacks specificity, potentially creating ambiguity in enforcement and compliance for insurers and confusion for regulators

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

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