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HB 5284

Insurance: other; allocation of revenue under the insurance provider assessment act; modify. Amends sec. 13 of 2018 PA 175 (MCL 550.1763).

2023-2024 Regular Session Introduced by Noah Arbit and 18 co-sponsors

The bill redirects portions of the Insurance Provider Fund to fund a statewide health data utility, with specific annual amounts starting at $6M and increasing, contingent on HB 52

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
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Bill Summary · HB 5284

Summary — HB 5284 (amends MCL 550.1763 — Insurance Provider Assessment Act)

Status: Referred to Committee on Government Operations
Primary subject: Insurance (allocation of Insurance Provider Fund revenues)
Companion/dependent bill: HB 5283 (establishes/authorizes selection of a “health data utility” / designates a health information exchange)

Purpose / Intent

HB 5284 repurposes and earmarks portions of the Insurance Provider Fund (created under the Insurance Provider Assessment Act, 2018 PA 175) to provide recurring state funding for the operation and administration of a statewide health data utility / health information exchange designated under HB 5283. The bill concentrates on specifying how Insurance Provider Fund expenditures may be appropriated for those services while preserving other existing priorities in the fund.

Key provisions

  • Amends section 13 of the Insurance Provider Assessment Act (MCL 550.1763) to add specific appropriations from the Insurance Provider Fund for the health data utility / health information exchange designated under HB 5283.
  • Under the House substitute (H‑1) that passed the House:
    • For fiscal year ending Sept. 30, 2025: $6,000,000 to the selected health data utility.
    • For fiscal year ending Sept. 30, 2026: $7,000,000 to the selected health data utility.
    • For fiscal year ending Sept. 30, 2027 and each subsequent fiscal year: $8,000,000 annually to the selected health data utility, with annual adjustments beginning Jan. 1, 2028, by the Detroit Consumer Price Index (annual average % change).
  • Maintains current fund priorities: first support for actuarially sound Medicaid MCO capitation and administrative/compliance costs. Remaining balance continues to flow to a restricted account as currently required.
  • Includes an enactment condition: the amendment does not take effect unless HB 5283 is also enacted.

Who is affected

  • Department of Health and Human Services (DHHS): administers the Insurance Provider Fund and would receive and appropriate the earmarked amounts; also the agency involved with the health data utility selection/contract under HB 5283.
  • Designated nonprofit health information exchange / health data utility: direct recipient of the earmarked appropriation for operations/administration.
  • Medicaid program/state budget: funds in the Insurance Provider Fund that would otherwise offset state Medicaid costs are redirected, increasing the state's Medicaid GF/GP share.
  • Health insurers/providers assessed under the Insurance Provider Assessment Act: indirectly affected because the assessment revenue is being partially reallocated.

Fiscal impact

  • House Fiscal Agency estimates (for the H‑1 funding schedule): increased GF/GP need as the state share of Medicaid by approximately $6.0 million in FY 2024‑25, $7.0 million in FY 2025‑26, and $8.0 million in FY 2026‑27 (and adjusted thereafter by CPI). Earlier draft versions proposed different amounts (e.g., $10.0 million plus 3% annually or a 0.5% earmark) and produced different fiscal estimates.
  • The earmarked money would be repurposed from amounts otherwise available to offset the state share of Medicaid.

Timeline and legislative history (selected)

  • Originally introduced Oct. 26, 2023 (Rep. Curt VanderWall).
  • Substitute (H‑1) adopted and passed the House Dec. 12, 2024 (given immediate effect by the House).
  • House substitute conditions enactment on passage of HB 5283.
  • Bill materials and alternate versions reflect negotiations; as provided, the bill was later filed/referred in 2025 and shows referral to committees (Health Policy, Government Operations, Rules) consistent with the bill’s amendment history. Current status in the provided materials: referred to Committee on Government Operations.

Notes

  • HB 5284 is structurally and functionally linked to HB 5283; it authorizes funding but does not itself select or set operating rules for the health data utility. Implementation requires both statutes to be enacted and subsequent appropriations by the Legislature.

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

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