August 15, 2012, Introduced by Reps. Lyons, Haveman, Wayne Schmidt, McBroom, Shirkey, Kurtz, O'Brien, Yonker, Huuki, Liss, Hooker, MacMaster, Hobbs, Dillon, Lori, Howze, Smiley, Geiss and Roy Schmidt and referred to the Committee on Insurance.
A bill to recognize the operation of health care sharing
ministries by eligible entities; and to provide that entities that
establish and operate health care sharing ministries are not
engaging in the business of insurance.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"health care sharing ministries freedom to share act".
Sec. 3. As used in this act:
(a) "Eligible entity" means a faith-based, nonprofit entity
that maintains tax-exempt status under section 501(c) of the
internal revenue code, 26 USC 501.
(b) "Health care sharing ministry" or "ministry" means a
program established by an eligible entity for the sharing of
finances and health care in compliance with this act.
Sec. 5. An eligible entity may establish and operate a health
care sharing ministry under this act. An eligible entity that
establishes and operates a health care sharing ministry in
compliance with this act is not engaged in the business of
insurance in this state and the entity and ministry are not subject
to the insurance laws of this state.
Sec. 7. To be considered a health care sharing ministry under
this act, the ministry shall meet all of the following
requirements:
(a) Limit participation in the ministry to individuals who are
of a similar faith.
(b) Provide that the ministry act as a facilitator by matching
its participants who have financial or medical needs with
participants who have the ability to assist in meeting those needs
according to criteria established for the ministry by the eligible
entity.
(c) Provide for the financial or medical needs of a
participant through voluntary contributions by its participants.
(d) Provide amounts that participants may contribute with no
assumption of risk or promise to pay among its participants.
(e) Provide financial assistance to participants who have
financial or medical needs with no assumption of risk or promise to
pay by the ministry to its participants.
(f) Provide a monthly written statement to its participants
that lists the total dollar amount of qualified financial or
medical needs that were submitted to the ministry, as well as the
amount actually published or assigned to participants for their
contribution.
(g) Provide, in substantially similar form and language, the
following written disclaimer on or accompanying all applications
and guideline materials distributed by or on behalf of the
ministry:
"Notice: The [insert name of eligible entity] that operates
this health care sharing ministry is not an insurance company and
the financial assistance provided through the ministry is not
insurance and is not provided through an insurance company. Whether
any participant in the ministry chooses to assist another
participant who has financial or medical needs is totally
voluntary. A participant will not be compelled by law to contribute
toward the financial or medical needs of another participant. This
document is not a contract of insurance or a promise to pay for the
financial or medical needs of a participant by the ministry. A
participant who receives assistance from the ministry for his or
her financial or medical needs remains personally responsible for
the payment of all of his or her medical bills and other
obligations incurred in meeting his or her financial or medical
needs.".
Sec. 9. This act takes effect January 1, 2013.