SENATE BILL NO. 696


   September 21, 1999, Introduced by Senator SCHUETTE and referred 
        to the Committee on Health Policy.



        A bill to amend 1980 PA 350, entitled

   "The nonprofit health care corporation reform act,"

   by amending section 403 (MCL 550.1403).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 403.  (1)  A health care corporation, on
             a timely

 2    basis, shall pay to a member or a participating provider benefits

 3    as are entitled and provided under the applicable certificate.

 4     When not paid on a timely basis, benefits payable to a
             member

 5     shall bear simple interest from a date 60 days after a
                       satisfac-

 6     tory claim form was received by the health care corporation,
                       at a

 7     rate of 12% interest per annum.  The interest shall be paid
                       in

 8     addition to, and at the time of payment of, the claim.
                        SECTION

 9    2006A OF THE INSURANCE CODE OF 1956, 1956 PA 218, MCL 500.2006A,

10    APPLIES TO A HEALTH CARE CORPORATION.




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 1          (2) A health care corporation shall specify in writing
             the

 2     materials which constitute a satisfactory claim form not
                       later

 3     than 30 days after receipt of a claim, unless the claim is
                       set-

 4     tled within 30 days.  If a claim form is not supplied as to
                       the

 5     entire claim, the amount supported by the claim form shall
                       be

 6     considered to be paid on a timely basis if paid within 60
                       days

 7     after receipt of the claim form by the corporation.
                       

 8         Enacting section 1.  This amendatory act takes effect on

 9    January 1, 2000 and applies to all health care claims submitted

10    for payment on and after January 1, 2000.

11         Enacting section 2.  This amendatory act does not take

12    effect unless Senate Bill No. 694

13                           of the 90th Legislature is enacted into

14    law.





























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