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SB 371

Insurance: health insurers; limitations on duration of inpatient psychiatric admissions; prohibit. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406mm.

2025-2026 Regular Session Introduced by Rosemary Bayer and 2 co-sponsors

Michigan bill prohibits insurers from using time limits alone to deny coverage for inpatient psychiatric hospital stays, requiring clinical determination of medical necessity instead.

REFERRED TO COMMITTEE ON HEALTH POLICY
#insurance:healthinsurers #mentalhealth:hospitalization
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Bill Summary · SB 371

Legislative bill overview

SB 371 would amend Michigan's insurance code to prohibit health insurers from imposing time-based limitations on the duration of inpatient psychiatric hospital admissions. The bill creates a new section (3406mm) that restricts insurers' ability to cap how long patients can remain hospitalized for psychiatric treatment based solely on predetermined time periods.

Why is this important

Psychiatric hospitalization duration restrictions can force premature patient discharge before clinical stability is achieved, potentially leading to readmission, crisis episodes, or worse outcomes. This bill addresses a real tension in mental healthcare where insurance companies and medical providers may disagree on necessary length of stay, directly affecting vulnerable patients experiencing acute psychiatric crises.

Potential points of contention

  • Cost implications: Removing duration limits could increase insurance claims and premiums if patients stay longer than historical averages, raising healthcare costs for insurers and potentially employers/consumers
  • Clinical vs. administrative standards: Unclear whether the bill allows insurers to deny coverage based on other criteria (medical necessity reviews) or if it broadly prevents all duration-based decisions, which could conflict with utilization management practices
  • Definition and scope: The bill language is minimal—it's ambiguous whether this applies to all psychiatric admissions, specific diagnoses, or emergency vs. planned admissions, creating potential implementation disputes

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

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