SENATE BILL No. 1

 

 

January 10, 2007, Introduced by Senator GEORGE and referred to the Committee on Health Policy.

 

 

 

     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. The department shall seek appropriate amendments to

 

the medicaid state plan and shall include in any federal waiver

 

request, submitted with the intent to secure federal matching funds

 

to cover the medically uninsured, language to allow the department

 

of community health to do, at a minimum, all of the following:

 

     (a) Use medicaid funds to create incentives for individual

 

medical assistance recipients who practice specified positive

 

health behaviors. The incentives described in this subdivision may

 

include, but are not limited to, expanded benefits and incentives

 

relating to premiums, co-pays, or benefits.

 

     (b) Allow the department of community health to create pay-

 


for-performance incentives for contracted medicaid health

 

maintenance organizations. The medicaid health maintenance

 

organization contracts would include incentives for meeting health

 

outcome targets for chronic disease states and patient compliance

 

targets established by the department of community health.

 

     (c) Allow the department of community health to establish a

 

preferred product and service formulary program for durable medical

 

equipment. The preferred product and service formulary program for

 

durable medical equipment would require participation from the

 

department of community health, the contracted medicaid health

 

maintenance organizations, and provider organizations.

 

     (d) Provide financial support for electronic health records

 

including e-prescribing, web-based medical records, and other

 

health information technology initiatives using medicaid funds.