Legislation watch
Mackinac Center for Public Policy
Capitol Building

2013 Senate Bill 459: Alternative to federal health care law Medicaid expansion (and more)
  1. Introduced by Sen. Patrick Colbeck (R) on July 31, 2013, to revise state insurance regulations to facilitate “direct primary care” arrangements, which are authorized as an option under the individual insurance mandate of the federal health care law. The bill would also authorize the use of private health insurance “exchanges” as an alternative to the government version of these entities, which are the vehicle by which the federal law administers and distributes insurance subsidies to individuals. (Note: The Federal government has reportedly agreed to use the private “eHealthInsurance.com” company to perform this role by giving it access to the federal exchange data hub.)
    “Direct primary care” is a "new-old" health care delivery model that uses contracts between individuals and a physician in which routine and preventative health care services are delivered for a low monthly fee payment. This reportedly saves money because it eliminates the costly administration of reimbursements from conventional third-party insurance companies.
    Senate Bill 460 would convert the Medicaid health welfare program into a system that combines direct primary care services, a high-deductible insurance plan, and “gap” insurance or “deductible support” subsidies to cover the high deductibles for low income persons. Both bills were reported from committee at the same time as a Senate version of House Bill 4714 authorizing the expansion, so they can be available for consideration by the full Senate instead of the expansion.
    • Referred to the Senate Government Operations Committee on July 31, 2013.
      • Reported in the Senate on July 31, 2013.
    • Substitute offered in the Senate on August 27, 2013. The substitute passed by voice vote in the Senate on August 27, 2013.

Comments