HOUSE BILL No. 5776

February 20, 2008, Introduced by Reps. Hune and Gaffney and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 2212c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2212c. (1) An insurer that delivers, issues for delivery,

 

or renews in this state an expense-incurred hospital, medical, or

 

surgical policy or certificate that provides for coverage for

 

dental services and a health maintenance organization that issues a

 

health maintenance organization contract that provides for coverage

 

for dental services shall include on any explanation of benefits or

 

similar communication to an insured or enrollee for dental service

 

where the insurer or health maintenance organization is paying the

 

maximum covered benefit amount all of the following:

 

     (a) That the amount paid or to be paid is the maximum amount


 

the insurer or health maintenance organization is obligated to pay

 

under the terms of the policy, certificate, or contract.

 

     (b) That the amount paid or to be paid is not a determination

 

as to the reasonableness of the amount billed.

 

     (c) That the amount paid or to be paid is not a determination

 

as to whether the amount billed is or is not a customary or usual

 

fee or charge for the specified service provided.

 

     (2) The statements required under subsection (1) shall be in

 

boldfaced and uppercase type and shall be placed in a conspicuous

 

location on the explanation of benefits form or similar

 

communication.