2004 Senate Bill 1150

Allow stripped down HMO options

Introduced in the Senate

April 20, 2004

Introduced by Sen. Bill Hardiman (R-29)

To eliminate a requirement that HMO benefit plans include certain specified “basic health services” and require instead that they only include certain specified "preventive health care services." This would allow HMOs to offer various lower cost "stripped down" health plan options that focus more on preventative care.

Referred to the Committee on Health Policy

May 27, 2004

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Oct. 6, 2004

Substitute offered

To replace the previous version of the bill with one that eliminates the original provisions, and instead caps coinsurance levels. See Senate-passed version for details.

The substitute passed by voice vote

Nov. 4, 2004

Amendment offered by Sen. Gilda Jacobs (D-14)

To cap the medical service co-payments required of an insured person once the insurance deductible level has been reached.

The amendment failed 18 to 19 (details)

Passed in the Senate 26 to 11 (details)

To cap an HMO enrollee's coinsurance for basic health services and copayments for inpatient hospital services at 50% of the HMO's contracted reimbursement rate to an affiliated health care provider. Also, to limit an enrollee's annual aggregate out-of-pocket costs for coinsurance and copayments to $5,000 for an individual and $10,000 for a family. Also, to establish that an HMO participating in a government health program would not have to offer benefits or services in excess of the program's requirements. The bill has the effect of giving HMOs more flexibility in designing health care packages.

Received in the House

Nov. 4, 2004

Referred to the Committee on Insurance and Financial Services

Dec. 1, 2004

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 9, 2004

Passed in the House 56 to 41 (details)

To cap an HMO enrollee's coinsurance for basic health services and copayments for inpatient hospital services at 50% of the HMO's contracted reimbursement rate to an affiliated health care provider. Also, to limit an enrollee's annual aggregate out-of-pocket costs for coinsurance and copayments to $5,000 for an individual and $10,000 for a family. Also, to establish that an HMO participating in a government health program would not have to offer benefits or services in excess of the program's requirements. The bill has the effect of giving HMOs more flexibility in designing health care packages.

Vetoed by Gov. Jennifer Granholm

Dec. 29, 2004