2007 Senate Bill 1 / Public Act 100

Authorize Medicaid healthy behavior incentives

Introduced in the Senate

Jan. 10, 2007

Introduced by Sen. Tom George (R-20)

To require the Department of Human Services to seek federal permission to use Medicaid funds to create incentives for individual recipients who practice specified positive health behaviors. (Not smoking, losing weight, and actually showing up for doctor's appointments have been specified in earlier proposals by the sponsor.) The incentives may include expanded benefits; positive or negative incentives relating to premiums, co-pays, or benefits; and more. The bill would also allow the Department of Community Health to create pay-for-performance incentives for contracted Medicaid HMOs that meet health outcome targets for chronic diseases, and patient compliance targets established by the department. It would allow the department to establish a preferred provider program for durable medical equipment, and provide financial support using Medicaid funds for electronic health records, including e-prescriptions, web-based medical records and other health information technology initiatives.

Referred to the Committee on Health Policy

Feb. 20, 2007

Reported without amendment

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

Feb. 21, 2007

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Feb. 22, 2007

Passed in the Senate 37 to 0 (details)

To require the Department of Human Services to seek federal permission to use Medicaid funds to create incentives for individual recipients who practice specified positive health behaviors. (Not smoking, losing weight, actually showing up for doctor's appointments are some of the these.) The incentives may include expanded benefits; positive or negative incentives relating to premiums, co-pays, or benefits; and more. The bill would also allow the Department of Community Health to create pay-for-performance incentives for contracted Medicaid HMOs that meet health outcome targets for chronic diseases, and patient compliance targets established by the department. It would allow the department to establish a preferred provider program for durable medical equipment, and provide financial support using Medicaid funds for electronic health records, including e-prescriptions, web-based medical records and other health information technology initiatives.

Received in the House

Feb. 22, 2007

Referred to the Committee on Health Policy

Sept. 30, 2007

Substitute offered by Rep. Kathy Angerer (D-55)

To replace the previous version of the bill with one that "tie bars" the bill to Houses Bills 5194 and 5198, tax hikes that total $1.5 billion.

The substitute passed by voice vote

Passed in the House 107 to 2 (details)

To require the Department of Human Services to seek federal permission to use Medicaid funds to create incentives for individual recipients who practice specified positive health behaviors. (Not smoking, losing weight, actually showing up for doctor's appointments are some of the these.) The incentives may include expanded benefits; positive or negative incentives relating to premiums, co-pays, or benefits; and more. The bill would also allow the Department of Community Health to create pay-for-performance incentives for contracted Medicaid HMOs that meet health outcome targets for chronic diseases, and patient compliance targets established by the department. It would allow the department to establish a preferred provider program for durable medical equipment, and provide financial support using Medicaid funds for electronic health records, including e-prescriptions, web-based medical records and other health information technology initiatives. Passage of the bill occurred as part of a deal to avoid reducing state spending in the 2007-2008 Fiscal Year by imposing $1.5 billion in tax increases, including an income tax hike (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237024">House Bill 5194</a>) a new 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237025">House Bill 5198</a>).

Received in the Senate

Sept. 30, 2007

To concur with the House-passed version of the bill, which tie-bars it to a state income tax hike (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237024">House Bill 5194</a>) and a new 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237025">House Bill 5198</a>), part of a deal to avoid spending cuts in the Fiscal Year 2007-2008 budget.

Passed in the Senate 38 to 0 (details)

Signed by Gov. Jennifer Granholm

Oct. 1, 2007