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SB 27

Insurance: health insurers; equitable coverage for behavioral health and substance use disorder treatment; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406hh.

2023-2024 Regular Session Introduced by Sarah Anthony and 5 co-sponsors

Michigan law now requires health insurers to provide behavioral health and substance use disorder treatment coverage equitable to physical health coverage.

ASSIGNED PA 0041'24
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Bill Summary · SB 27

Legislative bill overview

SB 27 amends Michigan's insurance code to require health insurers to provide equitable coverage for behavioral health and substance use disorder (SUD) treatment. The bill establishes new standards ensuring that mental health and addiction services receive comparable coverage to physical health services, addressing historical disparities in insurance benefits.

Why is this important

Mental health and substance use disorders affect millions of Michigan residents, but insurance coverage for these treatments has traditionally lagged behind coverage for physical health conditions, creating barriers to care. This law aims to improve access to critical behavioral health services by requiring insurers to offer comparable benefits, which could reduce untreated mental illness and addiction while potentially lowering long-term healthcare costs associated with crisis interventions.

Potential points of contention

  • Cost implications: Insurers and employers may face increased premiums if behavioral health coverage expansion significantly increases claims; the extent of financial burden depends on implementation details not specified in the bill summary
  • Definition and scope ambiguity: The bill's effectiveness depends on how "equitable coverage" is defined—unclear whether it requires identical cost-sharing, visit limits, and out-of-network benefits, or simply comparable treatment to physical health
  • Provider network adequacy: Mandating coverage doesn't guarantee sufficient behavioral health providers exist in Michigan to meet demand, potentially limiting real-world access improvements despite expanded insurance requirements

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

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