SENATE BILL No. 1426

 

 

September 13, 2006, Introduced by Senator HAMMERSTROM and referred to the Committee on Health Policy.

 

 

 

     A bill to provide that certain entities contracting with state

 

and local units of government are subject to the patient's right to

 

independent review act.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act, "local unit of government" means

 

any political subdivision of this state, including, but not limited

 

to, school districts, cities, villages, townships, charter

 

townships, counties, charter counties, authorities created by the

 

state, and authorities created by other local units of government.

 

     Sec. 2. (1) An entity that contracts with a state or local

 

unit of government to provide, deliver, arrange for, pay for, or

 

reimburse any of the costs of health care services provided under a

 

self-funded plan established or maintained by that state or local

 


unit of government for its employees shall do all of the following:

 

     (a) Establish procedures and make available to persons covered

 

by the plan internal reviews as though the entity were an insurer

 

subject to section 2213 of the insurance code of 1956, 1956 PA 218,

 

MCL 500.2213.

 

     (b) Establish procedures and make available to persons covered

 

by the plan external reviews in the same manner and subject to all

 

the obligations, conditions, and consequences and as though the

 

entity were a health carrier under the patient's right to

 

independent review act, 2000 PA 251, MCL 550.1901 to 550.1929.

 

     (2) The commissioner or the office of financial and insurance

 

services shall provide external reviews under subsection (1)(b) to

 

a person covered by the plan as though that person were a covered

 

person under the patient's right to independent review act, 2000 PA

 

251, MCL 550.1901 to 550.1929.