As the Legislature enters the final stretch before its summer recess, lawmakers continue advancing healthcare-related legislation while budget negotiations remain unresolved. This week saw movement on a behavioral health screening proposal, renewed debate over parental access to minors' medical records, and Senate consideration of measures aimed at expanding health insurance options and restructuring Michigan's health insurance marketplace. At the same time, policymakers approved new surgical smoke safety requirements for hospitals and continued discussions around Medicaid funding priorities, an issue that remains a key focus for the Michigan State Medical Society as budget deliberations intensify.
House Health Policy Committee Moves Behavioral Health Pre-Admission Bill
The House Health Policy Committee voted to advance House Bill 6022 this week, sending the measure to the House Rules Committee for further consideration. The bill would allow Medicaid health plans to conduct pre-admission screenings for behavioral health patients when those plans are financially responsible for the patient's care, and supporters argue it could reduce emergency department delays by establishing a three-hour response requirement for screenings. Opponents, including the Community Mental Health Association of Michigan, maintain that current screening systems already meet performance standards and contend that emergency department bottlenecks stem primarily from shortages of psychiatric beds and treatment resources rather than screening delays. The legislation now moves to the House Rules Committee as debate continues over how best to improve access to timely behavioral health services. MSMS will continue to closely monitor the bill.
The Committee also heard testimony on House Bill 5974 which would explicitly guarantee parents and legal guardians access to the medical records of their minor children. Supporters argued that some hospitals and health systems have adopted policies and patient portal practices that can restrict parental access to records for adolescents, making it more difficult for parents to participate in healthcare decisions. Some legislators viewed the bill as a parental rights measure, while others raised concerns about its potential impact on existing privacy protections for minors seeking confidential healthcare services. No vote was taken on the bill and MSMS will work with the Michigan Chapter of the American Academy of Pediatrics to ensure the physician-patient relationship is prioritized.
Senate Considers New Options for Small Business Health Coverage as State-Based Exchange Legislation Advances
The Senate Health Policy Committee heard testimony this week on legislation designed to expand health insurance options for Michigan small businesses facing rising healthcare costs. Senate Bill 1011 would allow eligible small employers to join together in multiple-employer welfare arrangements (MEWAs) to purchase health coverage through pooled insurance arrangements regulated by the Michigan Department of Insurance and Financial Services (DIFS).
Under the proposal, participating employers would be required to enroll at least 75 percent of eligible employees and contribute at least 50 percent of the employee-only premium. The insurance pools would remain subject to federal Affordable Care Act requirements, including coverage of essential health benefits. The legislation also includes a reinsurance component that would reimburse 60 percent of eligible claims between $75,000 and $250,000 per covered individual each plan year.
Supporters of the measure argued that escalating healthcare costs are placing significant pressure on small businesses and threatening the viability of employer-sponsored coverage. Testimony before the committee highlighted several years of double-digit premium increases, with some family health insurance plans now exceeding $2,500 per month. Advocates contend that allowing employers to pool risk could help moderate premium growth and preserve access to coverage for workers and their families. The bill was taken up for testimony only but the Chair indicated he intended to vote it out next week.
The committee also voted along party lines to advance a six-bill package that would transition Michigan from the federally facilitated Affordable Care Act marketplace to a state-based health insurance exchange. Senate Bills 973, 974, 975, 976, 977, and 978 establish the framework for the new exchange while creating a reinsurance program intended to improve market stability and reduce premiums.
Separately, the committee unanimously approved House Bill 4779, which would require hospitals to use smoke evacuation equipment during surgical procedures that routinely generate surgical smoke. The legislation reflects growing attention to occupational health concerns associated with exposure to surgical smoke plumes and is intended to improve workplace safety for surgeons, nurses, and operating room personnel.
With only nine scheduled session days before they are due to leave Lansing for the summer, legislative leadership is under pressure to make progress on the budget. However, with no targets yet announced, some are growing concerned that the budget will not be set by the statutory deadline of July 1. MSMS continues to work with a coalition of groups to stress the importance of strengthening Medicaid funding in a year when there are few extra dollars available.
For further information on these and other issues, please contact MSMS Director of Government Affairs, Kate Dorsey, at kdorsey@msms.org.