MODIFY EXEMPTION; HEALTH CARE FALSE CLAIMS                                           S.B. 809:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 809 (as reported without amendment)

Sponsor:  Senator Jim Stamas

Committee:  Health Policy and Human Services

CONTENT

The bill would amend the Health Care False Claims Act to modify an exemption to a prohibition against offering or receiving a kickback or bribe in connection with health care goods or services paid for by a health care corporation or health care insurer.

Under Section 4 of the Act, a person who solicits, offers, pays, or receives a kickback or bribe in connection with the furnishing of goods or services for which payment is or may be made by a health care corporation or health care insurer, or who receives a rebate of a fee or charge for referring an individual to another person for the furnishing of health care benefits, is guilty of a felony, punishable by up to four years' imprisonment or by a maximum fine of $50,000, or both.

The Act specifies that a rebate or discount from a drug manufacturer or from a company that licenses or distributes the drugs of a drug manufacturer to a consumer for the consumer's use of a drug manufactured or licensed or distributed by the drug manufacturer or company does not violate Section 4. Under the bill, a rebate or discount from a drug manufacturer or from a company that licensed or distributed the drugs of a drug manufacturer to or for the benefit of a consumer for the administration or the consumer's use of a drug manufactured or licensed or distributed by the drug manufacturer or company, including for consumer costsharing requirements for the administration or drug would not violate Section 4. "Administration" would mean injection, infusion, or similar means of application.

MCL 752.1004a                                                     Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  8-31-20                                                   Fiscal Analyst:  Joe Carrasco

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.