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SB 450

Relating to: nonprofit agricultural organization health benefit coverage.

2025-2026 Regular Session Introduced by Dan Feyen and 1 co-sponsor

Senate Bill 450 mandates hospitals to align financial assistance policies with new guidelines, enhancing support for low-income and uninsured patients by 2027.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · SB 450

Summary of Senate Bill 450 (SB 450)

Bill Title: Health facilities: hospitals; certain hospital financial assistance policies; make subject to the hospital financial assistance act.
Introduced: June 26, 2025
Status: Referred to Committee of the Whole
Tie Bar With: SB 449

Purpose and Intent

Senate Bill 450 aims to amend the existing Public Act 350 of 1913, which governs the establishment and funding of county public hospitals. The primary intent of this bill is to ensure that the financial assistance policies of hospitals align with the proposed "Hospital Financial Assistance Act" outlined in Senate Bill 449. This alignment is intended to enhance the accessibility of financial assistance for patients, particularly those with limited income or without insurance.

Key Provisions

  • Amendment to Hospital Trustees' Authority:
    The bill specifies that the authority of hospital trustees to determine a patient's eligibility for financial assistance will now be subject to the guidelines established by the Hospital Financial Assistance Act.

  • Financial Assistance Program Requirements:
    Hospitals will be required to develop and implement a financial assistance program by January 1, 2027. This program must:

    • Base eligibility on objective metrics related to the Federal Poverty Guidelines (FPL).
    • Include patients with unpaid bills exceeding 30% of their annual income.
    • Offer discounts of up to 100% for uninsured patients with incomes at or below 350% of the FPL.

  • Reporting and Compliance:
    Hospitals must report details of their financial assistance programs to the Department of Health and Human Services (DHHS) annually by October 1, starting in 2027. Failure to comply with these requirements may result in civil fines.

  • Creation of the Medical Debt Relief Fund:
    The bill proposes the establishment of a Medical Debt Relief Fund, which will be funded by civil fines collected from hospitals that violate the provisions of the act. The DHHS will allocate these funds to programs aimed at relieving medical debt in Michigan.

Affected Parties

  • Hospitals:
    All hospitals operating under the jurisdiction of the Public Health Code will be required to comply with the new financial assistance program requirements.

  • Patients:
    Uninsured and low-income patients will benefit from enhanced financial assistance options, potentially reducing their medical debt burden.

  • Department of Health and Human Services (DHHS):
    The DHHS will oversee the implementation and compliance of the financial assistance programs and manage the Medical Debt Relief Fund.

Procedural Aspects

  • Timeline for Implementation:
    Hospitals must have their financial assistance programs in place by January 1, 2027, with reporting requirements commencing in October 2027.

  • Tie Bar with SB 449:
    This bill is tied to Senate Bill 449, which establishes the broader framework for hospital financial assistance, meaning that SB 450 will only take effect if SB 449 is enacted into law.

Conclusion

Senate Bill 450 represents a significant step towards improving financial assistance for patients in Michigan's hospitals. By aligning hospital policies with the proposed Hospital Financial Assistance Act, the bill aims to ensure that patients receive the support they need to manage medical expenses, thereby reducing the incidence of medical debt.

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

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