HOUSE BILL No. 6351


     September 24, 2002, Introduced by Rep. Ehardt and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1980 PA 350, entitled

   "The nonprofit health care corporation reform act,"

   by amending section 613 (MCL 550.1613); and to repeal acts and

   parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 613.  (1) If the request for a hearing under this sec-

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        tion is with regard to a rate filing not yet acted upon under

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        section 610(2)(a), no  such  action shall be taken by the commis-

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        sioner until after the hearing has been completed.  However, the

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        commissioner shall proceed to act upon those portions of a rate

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        filing upon which no hearing has been requested.  Within 15 days

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        after receipt of a request for a hearing, the commissioner shall

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        determine if the person has standing.  If the commissioner

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        determines that the person has standing, the person may have

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        access to the entire filing subject to the same confidentiality


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        requirements as the commissioner under section 604, and  shall

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        be  IS subject to the penalty provision of section 604(5).   Upon

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        determining that the person has standing, the commissioner shall

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        immediately appoint an independent hearing officer before whom

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        the hearing shall be held.  In appointing an independent hearing

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        officer, the commissioner shall select a person qualified to con-

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        duct hearings, who has experience or education in the area of

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        health care corporation or insurance rate determination and

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        finance, and who is not otherwise associated financially with a

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        health care corporation or a health care provider.  The person

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        selected shall not be currently or actively employed by this

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        state.  For purposes of this subsection, an employee of an educa-

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        tional institution shall not be considered to be employed by this

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        state.  For purposes of this section, a person has "standing" if

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        any of the following circumstances exist:

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             (a) The person is, or there are reasonable grounds to

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        believe that the person could be, aggrieved by the proposed

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        rate.

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             (b) The person is acting on behalf of 1 or more named per-

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        sons described in subdivision (a).

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             (c) The person is the commissioner, the attorney general, or

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        the health care corporation.

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             (2) Not more than 30 days after receipt of a request for a

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        hearing, and upon not less than 15 days' notice to all parties,

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        the hearing shall be commenced.  Each party to the hearing shall

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        be given a reasonable opportunity for discovery before and

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        throughout the course of the hearing.  However, the  hearing



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        officer  COMMISSIONER OR HIS OR HER DESIGNEE may terminate

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        discovery at any time, for good cause shown.  The  hearing

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        officer  COMMISSIONER OR HIS OR HER DESIGNEE shall conduct the

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        hearing pursuant to the administrative procedures act.  The hear-

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        ing shall be conducted in an expeditious manner.  At the hearing,

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        the burden of proving compliance with this act  shall be upon  IS

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        ON the health care corporation.

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             (3) In  rendering a proposal for  ISSUING a decision, the

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         hearing officer  COMMISSIONER OR HIS OR HER DESIGNEE shall con-

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        sider the factors prescribed in section 609 AND SHALL INCLUDE A

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        STATEMENT OF FINDINGS.

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              (4) Within 30 days after receipt of the hearing officer's

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        proposal for decision, the commissioner shall by order render a

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        decision which shall include a statement of findings.

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             (4)  (5)  The commissioner shall withdraw an order of

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        approval or approval with modifications if the commissioner finds

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        that the filing no longer meets the requirements of this act.

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             Enacting section 1.  Section 514 of the nonprofit health

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        care corporation reform act, 1980 PA 350, MCL 550.1514, is

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        repealed.

















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