HOUSE BILL No. 5625

May 3, 2016, Introduced by Reps. Yanez and Callton and referred to the Committee on Insurance.

 

     A bill to amend 1984 PA 218, entitled

 

"Third party administrator act,"

 

(MCL 550.901 to 550.960) by adding section 33.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 33. (1) A third party administrator shall not enter into

 

a service contract for a benefit plan if the benefit plan includes

 

a health care service as a covered health care benefit and the

 

copayment or coinsurance for the health care service payable by the

 

covered individual is greater than 50% of the cost of the health

 

care service.

 

     (2) The director of the department of insurance and financial

 

services shall investigate and issue a ruling on all complaints

 

arising under this section.

 

     Enacting section 1. This amendatory act applies to a service


contract entered into after the date this amendatory act is enacted

 

into law. For a service contract in effect on or before the date

 

this amendatory act is enacted into law, this amendatory act

 

applies on the date the service contract is next extended, renewed,

 

or modified in any manner.

 

     Enacting section 2. This amendatory act takes effect 90 days

 

after the date it is enacted into law.