HB 5828 (Michigan, 2025-2026) – Summary
Overview
- Purpose: Prohibit health insurers from denying or limiting coverage for an insured who intends to end their life in accordance with the death with dignity act. The measure ties to a companion bill (HB 5825) and amends the Michigan Insurance Code to add a specific prohibition related to death with dignity scenarios, while also making targeted amendments to long-term care requirements and universal life policy disclosures.
- Jurisdiction: Michigan
- Bill status: Introduced April 21, 2026; referred to Committee on Government Operations.
Main Provisions
1) New prohibition for health insurers (Sec. 3406rr)
- Core rule: An insurer that delivers, issues for delivery, or renews in Michigan a health insurance policy may not deny or limit coverage for an insured who intends to end the insured's life in accordance with the death with dignity act.
- Effect: Creates a state-level assurance that use of death with dignity provisions (as permitted by state law) cannot be grounds to refuse or reduce health insurance coverage for the insured.
2) Long-term care coverage provisions (Sec. 3905)
- General requirements for long-term care coverage:
- Must include coverage for intermediate/basic care at least as substantial as that for skilled nursing care.
- May not exclude or limit coverage by type of illness, type of provider, territorial limitations, treatment, medical condition, or accident, with specified exceptions.
- Allowed exclusions/limitations:
- Preexisting conditions; mental or nervous disorders (with defined scope, excluding Alzheimer’s and related disorders from automatic exclusions); alcoholism or drug addiction; illnesses or conditions arising from war, felonies/riots, or service in armed forces; and suicide or self-inflicted injury—however, suicide exclusions do not apply to death with dignity acts.
- Pre-conditions for certain coverages:
- For non-home-care long-term care coverage: coverage may require a prior recommendation by a designated person and approval by the commissioner or prescribed by a licensed physician before certain coverages take effect.
- For home care: similar pre-approval process by designated person(s) and approval by the director.
3) Universal life policy disclosures (Sec. 4037)
- Required annual report to policyholders (at least once per year, with data dated within 3 months before mailing) including:
- Policy period dates, policy value, components credited/debited to policy value, current death benefit, net cash surrender value, outstanding loans, and notices if the policy would lapse or would not maintain insurance in force next period without additional premium (for fixed and flexible premium universal life policies).
- Illustrative report: Must be provided upon request with similar content as the annual disclosures.
- Guarantees and disclosures:
- Include explanations of guaranteed minimum interest, maximum mortality and expense charges, and any nonguaranteed elements.
- Clarify conduct of credits/charges and whether values are guaranteed or non-guaranteed.
- Provide a general description of cash surrender value calculations, including guaranteed charges, surrender penalties, and limits on premium-related changes.
- Policyowner rights and timing:
- If policy allows changes to basic coverage, disclose any limits on timing or amount of changes.
- If changes can increase coverage, indicate whether a new contestability period or suicide provision applies to the additional coverage (suicide defined as not including death under the death with dignity act).
- If a maturity/end date exists, inform the policyowner that coverage may not continue to maturity even with timely premiums.
- Notice requirements: insurer must send at least 30 days prior notice before termination of coverage; flexible premium policies must provide a grace period of at least 30 days after lapse, with lapse defined when net cash surrender value reaches zero.
Effective Date and Conditions
- Effective date: The act takes effect 90 days after enactment.
- Contingent enactment: This act does not take effect unless Senate Bill S06030’26 or House Bill 5825’26 (the tie-bar legislation) is enacted into law.
Who is Affected
- Health insurers issuing or renewing health insurance policies in Michigan.
- Insurers offering long-term care coverage (including home care) under Michigan policies.
- Issuers of universal life insurance policies, and policyowners who receive annual/disclosure reports and illustrative projections.
- Policyowners with long-term care riders or life insurance contracts with grace periods, surrender values, and contingent changes to coverage.
Key Timeline Aspects
- 90-day delayed effective date after enactment.
- Annual/disclosure reporting timelines are tied to policy periods and current reporting periods, with data dating up to three months prior to mailing.
Notes
- The bill explicitly ties its effectiveness to the related HB 5825, indicating a legislative package with tie-bar requirements.
- The suicide-related protections align with a death with dignity framework, making clear that coverage decisions cannot be denied based on end-of-life decisions under that act.
Impact Considerations
- Policyholders: Enhanced protection for individuals pursuing death with dignity while maintaining health coverage.
- Insurers: Need to adjust underwriting and claim determination processes to ensure coverage is not denied on basis of death with dignity, and to implement expanded disclosure and reporting requirements for universal life policies.
- Regulators: Additional oversight through mandated disclosures and pre-approval provisions for certain long-term care coverages.
