SENATE BILL No. 676

 

 

November 12, 2013, Introduced by Senators HOPGOOD, HUNTER, HOOD and SMITH 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 2213e.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2213e. (1) An insurer or health maintenance organization

 

that offers a health benefit plan or the person that administers a

 

health benefit plan, which health benefit plan provides coverage

 

for prescription drugs or devices, shall do all of the following:

 

     (a) Establish a subscription service for the purpose of

 

conveying information about the cost of prescription drugs or

 

devices under the health benefit plan at no cost to individuals who

 

subscribe to the service.

 

     (b) Allow enrollees, members, subscribers, and other

 

beneficiaries of the health benefit plan to subscribe and


 

unsubscribe from the service at any time. The insurer, health

 

maintenance organization, or person shall allow an individual to

 

subscribe and unsubscribe to the service in person, in writing,

 

through the internet, by telephone, by electronic mail, or by any

 

other method approved by the department.

 

     (c) Allow subscribers to the service a choice of the manner in

 

which they will receive notices about the cost of prescription

 

drugs or devices under the health benefit plan as follows:

 

     (i) By mail through the United States postal service.

 

     (ii) Through text messaging.

 

     (iii) By electronic mail.

 

     (iv) Through any other electronic method made available to and

 

chosen by the subscriber.

 

     (d) Advertise and promote the availability of the subscription

 

service to enrollees, members, subscribers, and other beneficiaries

 

of the health benefit plan.

 

     (e) Allow a subscriber to choose to receive all notices about

 

the cost of prescription drugs or devices under the health benefit

 

plan or to receive notices about the cost of the specific drugs or

 

devices of his or her choosing.

 

     (f) Provide notice to subscribers when the cost of a

 

prescription drug or device under the health benefit plan will

 

increase by more than 50%.

 

     (g) Provide notice to subscribers if a prescription drug or

 

device that was on the health benefit plan's maximum allowable cost

 

list is being removed from that list.

 

     (2) As used in this section, "health benefit plan" means all


 

of the following but does not include a department of community

 

health pharmacy program:

 

     (a) An expense-incurred hospital, medical, or surgical policy

 

or certificate provided by an insurer, not including any of the

 

following:

 

     (i) Any policy or certificate that provides coverage only for

 

any of the following:

 

     (A) Vision.

 

     (B) Dental.

 

     (C) Specific diseases.

 

     (D) Accidents.

 

     (E) Credit.

 

     (ii) Hospital indemnity policy or certificate.

 

     (iii) Disability income policy or certificate.

 

     (iv) Coverage issued as a supplement to liability insurance.

 

     (v) Medical payments under automobile, homeowners, or worker's

 

compensation insurance.

 

     (b) A benefit plan that provides hospital, medical, or

 

surgical benefits through a multiple employer welfare arrangement

 

regulated under chapter 70.

 

     (c) A health maintenance contract issued by a health

 

maintenance organization licensed or issued a certificate of

 

authority in this state.

 

     (d) Any policy, contract, or certificate of health benefits

 

administered by a third party administrator licensed under the

 

third party administrator act, 1984 PA 218, MCL 550.901 to 550.960.