Legislative Update: Health Policy Takes Center Stage as Budget Talks Continue

With little visible progress being made on the budget, this week saw major policy items discussed.

The House Health Policy Committee met this week with the lengthiest agenda so far this year, across a range of health policy topics. They heard testimony on Senate Bill 144, which would allow patients, under specific circumstances, direct access to physical therapy services without a physician referral. Proponents contend the bill would improve access to care, reduce healthcare costs, and help Michigan retain physical therapy professionals. MSMS has worked closely with the Michigan Chapter of the American Physical Therapy Association for several years to ensure robust patient safety guardrails and is neutral on the bill. A vote was not yet taken.

Additionally, the Committee advanced legislation addressing medical debt (House Bills 5254, 5255, 6071, 6072, and 6073) including bills that would limit interest and collection practices, establish hospital financial assistance requirements, and restrict the reporting of medical debt to consumer credit agencies. This legislation is in line with MSMS policy regarding medical debt, which reads, “MSMS believes in the adoption of state and federal policies that prevent medical debt, help individuals avoid court involvement, and ensure that court involved cases do not result in devastating consequences on individuals’ employment, physical health, mental wellbeing, housing, and economic stability. Such policies include garnishment protections to protect assets needed to pay down medical debt (i.e., wages or property) and capping the maximum interest rate on medical debt at 5 percent.” Because some of the above bills are identical to previously passed Senate bills, MSMS is hopeful House and Senate leadership will come to an agreement to pass these bills and make meaningful change for all patients in Michigan.

Finally, Committee Members considered an 11-bill package (House Bills 5728, 5729, 5730, 5731, 5732, 5733, 5734, 5735, 5736, 5737, and 5738) that would streamline licensing requirements for substance use disorder services by eliminating separate licensure requirements for hospitals, psychiatric facilities, psychiatric units, and crisis stabilization units already authorized to provide behavioral health care. Supporters argue the changes would reduce administrative burdens and improve access to treatment. No votes were taken, yet. MSMS is closely monitoring this package to ensure patient safety and quality of care remain at the forefront of all conversations surrounding substance use disorder services.

Votes were taken on House Bills 5974 (ensuring a parent or guardian can access records of a minor patient) and 5985 (expanding the state’s health provider recruitment strategy to include pharmacists), after having taken testimony at previous committee meetings.

The Committee also reviewed legislation (House Bills 5943 and 5944) authorizing the use of specialized behavioral health transport vehicles as an alternative to ambulances for individuals experiencing mental health crises, with supporters citing improved patient experiences, reduced costs, and greater transportation availability. There was general support for the idea but no vote taken.

The Senate Health Policy Committee also met, albeit with a much shorter agenda. The Committee heard testimony on a package of House bills (HB 5049, 5050, 5051, 5052, 5053,  and 5054) that would allow public schools, camps, and childcare centers to stock and administer needle-free epinephrine products, including the FDA-approved nasal spray Neffy, for severe allergic reactions. The legislation updates state law to expand emergency allergy treatment beyond traditional epinephrine auto-injectors (EpiPens). The bills passed the House unanimously in December 2025 and now awaits further Senate consideration.

The Committee also voted on a bill heard last week, Senate Bill 1011, which would allow certain small businesses to enter into multiple employer welfare agreements (MEWAs) to provide health coverage to employees. The bill was reported with recommendation to the Senate floor where it will await further action.