AFFORDABLE CARE ACT COVERAGE; MODIFY REQ. S.B. 1111 (S-1):

SUMMARY OF BILL

REPORTED FROM COMMITTEE

 

 

 

 

 

 

Senate Bill 1111 (Substitute S-1 as reported)

Sponsor: Senator Kevin Hertel

Committee: Health Policy

 


CONTENT

 

The bill would amend Chapter 34 (Disability Insurance Policies) of the Insurance Code to do the following:

 

--    Exempt retiree-only health insurance coverage from requirements related to coverage for dependents.

--    Allow retiree-only health insurance coverage and non-grandfathered health plan coverage to place lifetime or annual limits on the dollar value of essential health benefit coverage.

--    Exempt non-grandfathered health plan coverage and retiree-only health insurance coverage from the requirement to provide essential health benefits like hospitalization and pregnancy care.

--    Exempt insurance coverage that provided benefits for fixed indemnity, short-term duration policy, and non-grandfathered health plan coverage from the prohibition on limiting or excluding coverage based on a pre-existing condition.

 

MCL 500.3403 et al.

 

BRIEF RATIONALE

 

In 2023, Public Acts (PAs) 156 to 163 codified provisions of the Affordable Care Act (ACA) into the Insurance Code, such as prohibitions against exclusion of coverage due to a pre-existing condition. According to testimony, these PAs did not incorporate all the intended provisions of the ACA. The bill would further incorporate some of the intended ACA provisions, including amendments to the Insurance Code to exempt certain plans from providing benefits for pre-existing conditions in accordance with the ACA.

 

Legislative Analyst: Alex Krabill

 

FISCAL IMPACT

 

The bill would have no fiscal impact on State or local government.

 

Date Completed: 12-12-24 Fiscal Analyst: Nathan Leaman

 

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.