Legislative

Legislative Update July 2018
Ryan Burtka, Lobbyist

The August primary election is right around the corner and the political attack ads are flying. In the race for the gubernatorial nomination, Republican Bill Schuette still appears to have a sizeable advantage over current Lt. Governor Brian Calley and State Senator Patrick Colbeck. Calley has been up on television throughout July but it appears his poll numbers haven’t changed much. Colbeck has a strong following in the grass roots and party activist community but lacks the funding to get better recognition statewide. To further emphasize Schuette’s lead, he is the only Republican candidate that has been subject to attack ads from Democrats who appear to be trying to soften him up for the general election or even trying to push to the nomination towards a weaker candidate. On the Democratic side, the nomination is still Gretchen Whitmer’s to lose. Shri Thanadar, has poured in close to $11 million of his own money and polls show that he is within the margin of error of Whitmer. Abdul El-Sayed, is having Bernie Sanders come in and stump for him, and has a strong following from the progressive side of the party. It’s likely to come down to Detroit voter turnout, where Whitmer is underperforming compared to Thanadar and El-Sayed. The safe bet is still on a Schuette vs Whitmer matchup this November but depending on what could be a record turn out on Tuesday and how candidates split votes, it may just be a wild ride.

Other high profile races include the 11th Congressional where Lana Epstein leads the Republicans but with several more prominent names on the ballot, Mike Kowall, Klint Kesto, and Rocky Raczkowski, its anyone’s to take. State Rep. Tim Greimel has locked up most of the traditional Democratic support for that race as well, but well funded Suneel Gupta is out spending him. That seat is still a toss up for this fall.

This primary may also be a bit of a referendum on Detroit Mayor Mike Duggan. After failing to get Detroit House Democrats to vote for his auto no-fault reform package, various political action committees and non-profits associated with the Mayor have funded primary challengers to incumbent legislators and for open seats. These safe Democratic seats often have several primary candidates and the winner in August is almost guaranteed a victory in November. Duggan hopes to get enough of his supporters in office to take another run at auto insurance reform next year.

DIFS Uncertain on How to Regulate AHPs in Michigan

Michigan is still delaying on if the state will regulate AHPs under state law per the Department of Labor rule finalized last month. After repeated questions to the Department, they gave no information and no time line for when an interpretation of the rule would be released. This is troublesome as other states begin to move forward with some sort of regulatory structure for AHPs. One of the selling points of AHPs from the Trump Administration was the federal regulatory structure would allow them to be sold across state lines, unless there was additional regulation from the state. Until there is clear guidance from the state, it may be difficult to establish AHPs in multi-state regions. With only 5 months left in the Snyder administration and the current DIFS Director, Patrick McPharlin, unlikely to return and his chief Deputy Teri Morante, perhaps to retire, the current bureaucracy may be punting on the issue. The guidelines from the federal government have start dates for AHPs in the beginning of next year. Unless the state takes action in the near future it will be difficult to have an AHP product on the market in time.

Legislative Update - June 2018
Ryan Burtka, Lobbyist
KRKM

June saw the legislature wrap up most of their priorities before skipping out of town and onto the campaign trail. Governor Snyder went 8 for 8 in getting next years budget finished in June. The FY19 budget doesn’t have a whole lot of surprises but does include $400,000 for a study on Michigan’s individual market, setting up the potential 1332 waiver legislation. After two unsuccessful ballot initiative drives, the repeal of Prevailing Wage finally had enough signatures to qualify for the ballot this November, however, the conservative legislature ratified the citizen’s initiative and repealed Michigan’s Prevailing Wage Law. There was talk about doing something similar with the recreational marijuana initiative. Polling suggests that the citizen’s initiative will pass this November and there was talk about conservative Republicans adopting and modifying the proposal to more closely regulate marijuana and make it easier to amend in the future. The plan never got off the ground and the deadline passed meaning recreational marijuana will be on the ballot this fall. It’s likely to be joined with other ballot proposals such as paid sick leave, increased minimum wage, voting reforms such as no-reason absentee, and possibly non-partisan redistricting of legislative districts. The legislature has a few token session days this summer but will not resume full time work until September, until then the August 7th  primary will be the main focus and it should give shape to what November will look like.

Medicaid Work Requirements Bill Signed

Michigan is joining a handful of other Republican lead states in enacting work requirements for able bodied adults in the Medicaid program. Sen. Mike Shirkey worked an agreement between the Senate, House, and the Governor to add work requirements to the Health Michigan Program starting in 2020. Significant changes were made to the introduced bill and the final product resembles what other states have done through legislation or executive action for work requirements. Notably, changes were also made to the original Healthy Michigan law which may prove to give some permanence to the expanded Medicaid program. Also, the original “marketplace option” which saw Healthy Michigan enrollees moved to the individual market through the exchange after 4 years was removed and replaced with those individuals needing to meet certain healthy behavior goals in addition to the work requirements. There is about 18 month period for the Michigan Department of Health and Human Services to negotiate a waiver with CMS to enact the requirements and as we have seen in other states, it will likely be challenged in court.

DOL Releases Final Rule on Association Health Plans

 At the very end of June, the Department of Labor released its final rule on Association Health Plans. The 200 page document outlines the possible structures of various versions of an AHP without defining much of anything. The take-aways were definitive timelines for when AHPs can start operating, carriers are prohibiting from sponsoring but may be a TPA, Associations must have a some commonality of business and may cross state lines, and AHPs will not be required to offer the full suite of EHBs. There is still quite a bit of ambiguity on what constitutes a “substantial business purpose” and if AHP’s will be regulated under state law as well. Michigan’s Department of Insurance and Financial Services is currently reviewing the final rule. Other states may also act to regulate. In California and New York, the legislature has introduced bills to require AHP’s to adhere to ACA requirements on EHBs. What remains to be seen is if under Michigan’s new Governor, and new DIFS director, if there is a change on the state role in regulation.

Michigan Legislative

State Legislation Currently Being Tracked

HB 4019 - INSURANCE, Health Insurers, Require reimbursement for dispensing of a 365-day supply of covered prescription contraception. (Faris, Pam (D), 01/12/17)
(Status: 01/18/2017 - bill electronically reproduced 01/12/2017)

HB 4074 - INSURANCE, Health Insurers, Require abuse-deterrent opioid analgesic drug coverage. (Kesto, Klint (R), 01/24/17)
(Status: 01/25/2017 - bill electronically reproduced 01/24/2017)

HB 4117 - INSURANCE, Producers, Modify license eligibility. (Iden, Brandt (R), 01/31/17)
(Status: 02/01/2017 - bill electronically reproduced 01/31/2017)

HB 4135 - INSURANCE, Health Benefits, Prohibit insurer or health maintenance organization requiring physicians to hold certain certifications before paying or reimbursing claims unless specifically required for licensure. (Canfield, Edward (R), 01/31/17)
(Status: 02/01/2017 - bill electronically reproduced 01/31/2017)

HB 4325 PA 67 - INSURANCE, Producers, Provide for continuing education credit carryover system for insurance producers. (Barrett, Tom (R), 03/07/17)
(Status: 07/12/2017 - assigned PA 67'17 with immediate effect)

HB 4709 - HEALTH OCCUPATIONS, Health Professionals, Provide for regulation and licensure of certified anesthesiologist assistants and modify requirements for supervision of nurse anesthetists in certain circumstances. (Vaupel, Hank (R), 06/07/17)
(Status: 06/08/2017 - bill electronically reproduced 06/07/2017)

HB 4855 - INSURANCE, Health Insurers, Prohibit health insurance policy coordinated with Medicaid. (Tedder, Jim (R), 07/12/17)
(Status: 08/16/2017 - bill electronically reproduced 07/12/2017)

HB 4903 - INSURANCE, Insurers, Prohibit refusal to provide coverage to victim of criminal sexual conduct. (Kosowski, Robert L. (D), 09/06/17)
(Status: 09/07/2017 - bill electronically reproduced 09/06/2017)

HB 4904 - INSURANCE, Insurers, Prohibit charging a different rate based on sex. (Kosowski, Robert L. (D), 09/06/17)
(Status: 09/07/2017 - bill electronically reproduced 09/06/2017)

HB 5035 - INSURANCE, Insurers, Require coverage for certain pediatric autoimmune neuropsychiatric disorders. (Howrylak, Martin (R), 09/27/17)
(Status: 09/28/2017 - bill electronically reproduced 09/27/2017)

HB 5089 - WORKERS COMPENSATION, Disabilities, Add breast cancer to presumption of occupational causation. (Brinks, Winnie (D), 10/11/17)
(Status: 10/12/2017 - bill electronically reproduced 10/11/2017)

HB 5154 - HEALTH, Testing, Mandate requirement for patient of radiological treatment to be provided with information related to certain protective devices available. (Gay-Dagnogo, Sherry (D), 10/19/17)
(Status: 10/24/2017 - bill electronically reproduced 10/19/2017)

HB 5216 - CIVIL PROCEDURE, Other, Eliminate list of prisoner actions dismissed as frivilous (Kesto, Klint (R), 11/02/17)
(Status: 03/07/2018 - assigned PA 54'18 with immediate effect)

HB 5217 - HEALTH, Emergency Response, Provide for requiring the use of ground ambulance to transport a patient unless medically necessary for the patient. (Bellino, Joseph (R), 11/02/17)
(Status: 12/12/2017 - REFERRED TO COMMITTEE ON INSURANCE)

HB 5218 - HEALTH FACILITIES, Hospitals, Require disclosure of certain insurance information to nonemergency patents before ordering an aircraft transport vehicle or ambulance that is a rotary aircraft. (Barrett, Tom (R), 11/02/17)
(Status: 12/12/2017 - REFERRED TO COMMITTEE ON INSURANCE)

HB 5219 - HEALTH FACILITIES, Emergency Medical Services, Require notice to nonemergency patient of cost of air ambulance services and whether it is a participating provider with patent's insurance. (LaFave, Beau (R), 11/02/17)
(Status: 12/12/2017 - REFERRED TO COMMITTEE ON INSURANCE)

HB 5223 - HEALTH, Pharmaceuticals, Require manufacturers of prescription drugs to file annual report on the costs associated with prescription drugs under certain circumstances. (Vaupel, Hank (R), 11/07/17)
(Status: 11/08/2017 - bill electronically reproduced 11/07/2017)

HB 5274 - INSURANCE, Insurers, Require opt-in for approval to release nonpublic personal financial information. (Gay-Dagnogo, Sherry (D), 11/28/17)
(Status: 11/29/2017 - bill electronically reproduced 11/28/2017)

HB 5275 - INSURANCE, Insurers, Require disclosure of security breach in annual statement to state. (Cochran, Tom (D), 11/28/17)
(Status: 02/22/2018 - reported with recommendation with substitute H-2)

HB 5367 - INSURANCE, Health Insurers, Provide equal treatment for coverage of orally administered anticancer chemotherapy. (Rendon, Daire (R), 12/13/17)
(Status: 12/28/2017 - bill electronically reproduced 12/13/2017)

HB 5444 - CHILDREN, Protection, Expand mandatory reporting requirements for child abuse or child neglect to include physical therapist and physical therapist assistant. (Yaroch, Jeff (R), 01/24/18)
(Status: 03/15/2018 - recommendation concurred in)

HB 5609 - INSURANCE, Property and Casualty, Allow gifts up to $100.00 to insured from property-casualty insurer. (Love, Leslie (D), 02/20/18)
(Status: 03/14/2018 - REFERRED TO THE COMMITTEE ON INSURANCE )

HB 5647 - HEALTH, Other, Allow use of handheld dental X-ray system under certain circumstances. (Frederick, Ben (R), 02/27/18)
(Status: 02/28/2018 - bill electronically reproduced 02/27/2018)

HB 5690 - CONSUMER PROTECTION, Unfair Trade Practices, Prohibit manufacturers from charging excessive prices or unconscionable increase in wholesale acquisition costs and require attorney general to investigate violations. (Camilleri, Darrin (D), 03/06/18)
(Status: 03/07/2018 - bill electronically reproduced 03/06/2018)

HB 5691 - HEALTH, Pharmaceuticals, Require manufacturers of prescription drugs to provide notice under certain circumstances of increase of wholesale acquisition cost of prescription drugs. (Garrett, LaTanya (D), 03/06/18)
(Status: 03/07/2018 - bill electronically reproduced 03/06/2018)

HB 5701 - HUMAN SERVICES, Medical Services, Provide for recipient work requirement plan for Medicaid coverage. (Runestad, Jim (R), 03/08/18)
(Status: 03/13/2018 - bill electronically reproduced 03/08/2017)

HB 5716 - HUMAN SERVICES, Medial Services, Provide for a recipient work requirement plan for Medicaid coverage. (Chatfield, Lee (R), 03/13/18)
(Status: 03/14/2018 - bill electronically reproduced 03/13/2018)

HB 5737 - INSURANCE, Health Insurers, Clarify dispensing of a 90-day supply of maintenance prescription drugs. (Green, Patrick (D), 03/20/18)
(Status: 03/21/2018 - bill electronically reproduced 03/20/2018)

HB 5773 - HEALTH FACILITIES, Other, Expand testing emergency patients for infectious agents to include testing for hepatitis C. (Faris, Pam (D), 04/10/18)
(Status: 04/11/2018 - bill electronically reproduced 04/10/2018)

HB 5841 - LABOR, Public Service Employment, Remove opt-out for public employee contribution to employer-provided health care benefits population threshold exclusion. (Santana, Sylvia (D), 04/19/18)
(Status: 04/24/2018 - bill electronically reproduced 04/19/2018)

HB 5858 - INSURANCE, Third Party Administrators, Require contract provision allowing a pharmacy to disclose current drug prices to a consumer. (Whiteford, Mary (R), 04/24/18)
(Status: 04/25/2018 - bill electronically reproduced 04/24/2018)

HB 5946 - HEALTH, Other, Create cystic fibrosis advisory committee. (Hammoud, Abdullah (D), 05/08/18)
(Status: 05/09/2018 - bill electronically reproduced 05/08/2018)

HB 6009 - INSURANCE, Health Insurers, Require coverage for prosthetic devices and services. (Lucido, Peter J. (R), 05/16/18)
(Status: 05/17/2018 - bill electronically reproduced 05/16/2018)

HB 6091 - INSURANCE, Health Benefits, Prohibit employer requirement that employees who opt out of health insurance coverage complete program. (Sabo, Terry J. (D), 05/30/18)
(Status: 06/05/2018 - bill electronically reproduced 05/30/2018)

HB 6092 - INSURANCE, Health Benefits, Prohibit public employer requirement that employees who opt out of medical benefit plan complete program. (Sabo, Terry J. (D), 05/30/18)
(Status: 06/05/2018 - bill electronically reproduced 05/30/2018)

HJR BB - PUBLIC EMPLOYEES AND OFFICERS, State, Make director of the department of insurance and financial services elective office. (Dianda, Scott (D), 01/16/18)
(Status: 01/17/2018 - joint resolution electronically reproduced 01/16/2018)

HR 0013 - Affordable Care Act, A resolution to memorialize Congress to repeal the Affordable Care Act. (Johnson, Steven (R), 01/26/17)
(Status: 01/26/2017 - introduced by Representative Steven Johnson)

HR 0139 - Medicaid, A resolution calling on the Governor, the Michigan Department of Insurance and Financial Services, and the Michigan Department of Health and Human Services to adopt a healthcare bill of rights and urging the Governor not to make cuts to the Medicaid program. (Brinks, Winnie (D), 07/12/17)
(Status: 07/12/2017 - introduced by Representative Winnie Brinks)

SB 0029 - INSURANCE, Health Insurers, Modify health insurance claims assessment rate under certain circumstances. (Horn, Ken (R), 01/18/17)
(Status: 01/24/2017 - DISCHARGE COMMITTEE APPROVED)

SB 0030 - INSURANCE, Health Insurers, Create health services fund. (Stamas, Jim (R), 01/18/17)
(Status: 01/24/2017 - DISCHARGE COMMITTEE APPROVED)

SB 0031 - USE TAX, Collections, Provide for allocation of certain revenues collected into the health services fund. (MacGregor, Peter (R), 01/18/17)
(Status: 01/24/2017 - DISCHARGE COMMITTEE APPROVED)

SB 0043 PA 55 - PUBLIC EMPLOYEES AND OFFICERS, Compensation and Benefits, Allow alternative cash reserves option for pooled plans. (Hansen, Goeff (R), 01/18/17)
(Status: 06/21/2017 - ASSIGNED PA 0055'17 WITH IMMEDIATE EFFECT)

SB 0096 - INSURANCE, Health Insurers, Exempt Michigan's federally recognized Indian tribes from health insurance claims assessment act. (Schmidt, Wayne A. (R), 02/02/17)
(Status: 02/02/2017 - INTRODUCED BY SENATOR WAYNE SCHMIDT)

SB 0213 PA 22 - HEALTH, Other, Provide prescribing drugs, including controlled substances, via telehealth nder certain circumstances and allow Michigan board of nursing to promulgate certain rules for clinical nurse specialists (MacGregor, Peter (R), 03/02/17)
(Status: 04/18/2017 - ASSIGNED PA 0022'17 WITH IMMEDIATE EFFECT)

SB 0458 - INSURANCE, Health Insurers, Require free coverage of birth control. (Knezek, David (D), 06/14/17)
(Status: 06/14/2017 - INTRODUCED BY SENATOR DAVID KNEZEK)

SB 0638 PA 91 - INSURANCE, Reinsurance, Modify eligibility credit for reinsurance (O'Brien, Margaret (R), 10/31/17)
(Status: 04/10/2018 - ASSIGNED PA 0091'18 WITH IMMEDIATE EFFECT)

SB 0644 - TORTS, Liability, Enact insurance agents liability act. (Jones, Rick (R), 11/01/17)
(Status: 11/01/2017 - INTRODUCED BY SENATOR RICK JONES)

SB 0830 - INSURANCE, Producers, Modify Licensing requirements. (Hune, Joe (R), 02/20/18)
(Status: 02/20/2018 - INTRODUCED BY SENATOR JOE HUNE)

SB 0838 - STATE FINANCING AND MANAGEMENT, Bonds, Extend time period for issuance of a security to pay off unfunded pension of post-employment health care liability. (Brandenburg, Jack (R), 02/21/18)
(Status: 03/01/2018 - REPORTED FAVORABLY WITHOUT AMENDMENT)

SB 0897 - HUMAN SERVICES, Medical Services, Provide for recipient work requirement plan for Medicaid coverage. (Shirkey, Mike (R), 03/08/18)
(Status: 04/19/2018 - referred to Committee on Appropriations)

SB 0899 - HEALTH, Pharmaceuticals, Require manufacturers of prescription drugs to provide notice of increase of wholesale acquisition cost of prescription drug under certain circumstances. (Ananich, Jim (D), 03/08/18)
(Status: 03/13/2018 - SENATOR REMOVED AS SPONSOR: JIM ANANICH)

SB 0900 - CONSUMER PROTECTION, Unfair Trade Practices, Prohibit manufacturers from charging excessive prices or unconscionable increases in wholesale acquisition costs and require the attorney general to investigate violations. (Ananich, Jim (D), 03/08/18)
(Status: 03/08/2018 - INTRODUCED BY SENATOR JIM ANANICH)

SB 0961 - INSURANCE, Health Benefits, Create task force to facilitate waiver under the affordable care act. (Shirkey, Mike (R), 04/24/18)
(Status: 04/24/2018 - INTRODUCED BY SENATOR MIKE SHIRKEY)

SB 0966 - INSURANCE, Health Insurers, Allow health insurers' refusal to pay claims submitted by hospitals under certain circumstances (Hune, Joe (R), 05/01/18)
(Status: 05/01/2018 - INTRODUCED BY SENATOR JOE HUNE)

SB 1016 - CORPORATE INCOME TAX, Insurance Companies, Reduce rates for certain gross premiums. (Stamas, Jim (R), 05/16/18)
(Status: 06/05/2018 - placed on third reading)

SB 1037 - HUMAN SERVICES, Medical Services, Require reinterpretation of existing Medicaid policy to be promulgated in the same manner as new policy and establish certain bed and reporting requirements. (MacGregor, Peter (R), 05/30/18)
(Status: 05/30/2018 - INTRODUCED BY SENATOR PETER MACGREGOR)

SB 1038 - HUMAN SERVICES, Medical Services, Modify and create deadlines for completion of audit of Medicaid cost reports. (Stamas, Jim (R), 05/30/18)
(Status: 05/30/2018 - INTRODUCED BY SENATOR PETER MACGREGOR)

SB 1039 - HUMAN SERVICES, Medical Services, Modify Medicaid eligibility for a nursing facility. (Hansen, Goeff (R), 05/30/18)
(Status: 05/30/2018 - INTRODUCED BY SENATOR PETER MACGREGOR)

SR 0068 - Medicaid, A resolution calling on the Governor, the Michigan Department of Insurance and Financial Services, and the Michigan Department of Health and Human Services to adopt a healthcare bill of rights and urging the Governor not to make cuts to the Medicaid program. (Hertel Jr., Curtis (D), 05/23/17)
(Status: 05/24/2017 - INTRODUCED BY SENATOR CURTIS HERTEL)

SR 0159 - Medicare, ; Congress,, A resolution to encourage the Congress of the United States to enact stronger Medicare fraud enforcement measures. (Bieda, Steven (D), 04/26/18)
(Status: 04/26/2018 - INTRODUCED BY SENATOR STEVEN BIEDA)

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