Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to pass a bill that authorizes health care corporation to merge with a nonprofit mutual disability insurer and establishes the Michigan Health Endowment Fund for the public welfare.

Highlights:

• Authorizes a health care corporation to merge with a nonprofit mutual disability insurer, resulting in the nonprofit mutual disability insurer as the surviving entity (Sec. 220).

• Specifies that a merged nonprofit mutual disability insurer is not exempt from taxation (Sec. 220).

• Authorizes the creation of a charitable nonprofit corporation, entitled the Michigan Health Endowment Fund, to receive and administer a fund for the public welfare, including efforts for infant mortality, wellness programs, access to healthy food, and technology enhancements (Sec. 653). 

• Requires the Michigan Health Endowment Fund to disburse $120 million over 8 years to subsidize the cost of individual Medigap coverage (Sec. 653).

• Requires a merged nonprofit mutual disability insurer to "use its best efforts" to make annual contributions to the Michigan Health Endowment Fund in an amount of up to $1.56 billion over a period of up to 18 years, beginning in April 2014 (Sec. 220).

• Requires all health care corporations in Michigan to offer health care benefits to all residents regardless of health status until January 1, 2014 (Sec. 401).

• Requires health care providers to do the following actions before discontinuing any plan or product (Sec. 401):
• Provide notice to the Office of Financial and Insurance Regulation commissioner; and
• Offer covered individuals the option to purchase any other plan or product without excluding  coverage for a pre-existing condition or providing a waiting period.

Full Bill Text