SB-0001, As Passed Senate, February 22, 2007

SUBSTITUTE FOR

SENATE BILL NO. 1

(As amended, February 21, 2007)

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

(MCL 400.1 to 400.119b) by adding section 105b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 105b. (1) The department of community health shall <<

>> create incentives for individual medical

assistance recipients who practice specified positive health

behaviors. The incentives described in this subsection may include,

but are not limited to, expanded benefits and incentives relating

to premiums, co-pays, or benefits. The positive health behaviors

described in this subsection may include, but are not limited to,

participation in health risk assessments and health screenings,

compliance with medical treatment, attendance at scheduled medical

Senate Bill No. 1 as amended February 21, 2007

appointments, participation in smoking cessation treatment,

exercise, prenatal visits, immunizations, and attendance at

recommended educational health programs.

     (2) The department of community health shall create pay-for-

performance incentives for contracted medicaid health maintenance

organizations. The medicaid health maintenance organization

contracts shall include incentives for meeting health outcome

targets for chronic disease states, increasing the number of

medical assistance recipients who practice positive health

behaviors, and meeting patient compliance targets established by

the department of community health. Priority shall be given to

strategies that prevent and manage the 10 most prevalent and costly

ailments affecting medical assistance recipients.

     (3) The department of community health shall establish a

preferred product and service formulary program for durable medical

equipment. The department of community health shall work with the

centers for medicare and medicaid services to determine if a joint

partnership with medicare is possible in establishing the program

described in this subsection as a means of achieving savings and

efficiencies for both the medicaid and medicare programs. The

preferred product and service formulary program for durable medical

equipment shall require participation from the department of

community health<< and shall permit>> the contracted medicaid health

maintenance

organizations<< and provider organizations to participate.>>

     (4) The department of community health shall seek financial

support for electronic health records, including, but not limited

to, personal health records, e-prescribing, web-based medical

Senate Bill No. 1 as amended February 21, 2007

records, and other health information technology initiatives using

medicaid funds.

     (5) The department of community health shall include in any

federal waiver request that is submitted with the intent to secure

federal matching funds to cover the medically uninsured nonmedicaid

population in the state language to allow the department of

community health to establish, at a minimum, the programs required

under subsections (1) and (2).

<<(6) The department of community health shall not implement incentives under this section that conflict with federal statute or regulation.>>