HOUSE BILL NO. 5698

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 3157 (MCL 500.3157), as amended by 2019 PA 21.

the people of the state of michigan enact:

Sec. 3157. (1) Subject to subsections (2) to (14), (15), a physician, hospital, clinic, or other person that lawfully renders treatment to an injured person for an accidental bodily injury covered by personal protection insurance, or a person that provides rehabilitative occupational training following the injury, may charge a reasonable amount for the treatment or training. The charge must not exceed the amount the person customarily charges for like treatment or training in cases that do not involve insurance.

(2) Subject to subsections (3) to (14), (15), a physician, hospital, clinic, or other person that renders treatment or rehabilitative occupational training to an injured person for an accidental bodily injury covered by personal protection insurance is not eligible for payment or reimbursement must be paid or reimbursed under this chapter for more than the following:as follows:

(a) For treatment or training rendered after July 1, 2021 and before July 2, 2022, 200% of the amount payable to the person for the treatment or training under Medicare.

(b) For treatment or training rendered after July 1, 2022 and before July 2, 2023, 195% of the amount payable to the person for the treatment or training under Medicare.

(c) For treatment or training rendered after July 1, 2023, 190% of the amount payable to the person for the treatment or training under Medicare.

(3) Subject to subsections (5) to (14), (15), a physician, hospital, clinic, or other person identified in subsection (4) that renders treatment or rehabilitative occupational training to an injured person for an accidental bodily injury covered by personal protection insurance is eligible for payment or reimbursement must be paid or reimbursed under this chapter of not more than the following:as follows:

(a) For treatment or training rendered after July 1, 2021 and before July 2, 2022, 230% of the amount payable to the person for the treatment or training under Medicare.

(b) For treatment or training rendered after July 1, 2022 and before July 2, 2023, 225% of the amount payable to the person for the treatment or training under Medicare.

(c) For treatment or training rendered after July 1, 2023, 220% of the amount payable to the person for the treatment or training under Medicare.

(4) Subject to subsection (5), subsection (3) only applies to a physician, hospital, clinic, or other person if either of the following applies to the person rendering the treatment or training:

(a) On July 1 of the year in which the person renders the treatment or training, the person has 20% or more, but less than 30%, indigent volume determined pursuant to the methodology used by the department of health and human services in determining inpatient medical/surgical factors used in measuring eligibility for Medicaid disproportionate share payments.

(b) The person is a freestanding rehabilitation facility. Each year the director shall designate not more than 2 freestanding rehabilitation facilities to qualify for payments under subsection (3) for that year. As used in this subdivision, "freestanding rehabilitation facility" means an acute care hospital to which all of the following apply:

(i) The hospital has staff with specialized and demonstrated rehabilitation medicine expertise.

(ii) The hospital possesses sophisticated technology and specialized facilities.

(iii) The hospital participates in rehabilitation research and clinical education.

(iv) The hospital assists patients to achieve excellent rehabilitation outcomes.

(v) The hospital coordinates necessary post-discharge services.

(vi) The hospital is accredited by 1 or more third-party, independent organizations focused on quality.

(vii) The hospital serves the rehabilitation needs of catastrophically injured patients in this state.

(viii) The hospital was in existence on May 1, 2019.

(5) To qualify for a payment under subsection (4)(a), a physician, hospital, clinic, or other person shall provide the director with all documents and information requested by the director that the director determines are necessary to allow the director to determine whether the person qualifies. The director shall annually review documents and information provided under this subsection and, if the person qualifies under subsection (4)(a), shall certify the person as qualifying and provide a list of qualifying persons to insurers and other persons that provide the security required under section 3101(1). 3101. A physician, hospital, clinic, or other person that provides 30% or more of its total treatment or training as described under subsection (4)(a) is entitled to receive, instead of an applicable percentage under subsection (3), 250% of the amount payable to the person for the treatment or training under Medicare.

(6) Subject to subsections (7) to (14), (15), a hospital that is a level I or level II trauma center that renders treatment to an injured person for an accidental bodily injury covered by personal protection insurance, if the treatment is for an emergency medical condition and rendered before the patient is stabilized and transferred, is not eligible for payment or reimbursement must be paid or reimbursed under this chapter of more than the following:as follows:

(a) For treatment rendered after July 1, 2021 and before July 2, 2022, 240% of the amount payable to the hospital for the treatment under Medicare.

(b) For treatment rendered after July 1, 2022 and before July 2, 2023, 235% of the amount payable to the hospital for the treatment under Medicare.

(c) For treatment rendered after July 1, 2023, 230% of the amount payable to the hospital for the treatment under Medicare.

(7) If Medicare does not provide an amount payable for a treatment or rehabilitative occupational training under subsection (2), (3), (5), or (6), the physician, hospital, clinic, or other person that renders the treatment or training is not eligible for payment or reimbursement must be paid or reimbursed under this chapter of more than the following, as applicable:as follows:

(a) For treatment or training rendered through a residential program, outpatient program, or home- and community-based rehabilitation program, subject to subsection (16), 200% of any rate payable for the treatment or training under the 2019 reimbursement schedule for brain injury rehabilitation services under Medicaid.

(b) Subject to subsection (11), for treatment or training rendered in the injured individual's home, subject to subsection (16), 150% of any applicable amount that would be payable to a home health agency for the treatment or training under the United States Department of Veterans Affairs reimbursement schedule. If the United States Department of Veterans Affairs discontinues publication of a payable service and rate, the treatment or training must be reimbursed at 150% of the last known United States Department of Veterans Affairs rate.

(8) If Medicare does not provide an amount payable for a treatment or rehabilitative occupational training under subsection (2), (3), (5), or (6) and there is no applicable limitation for the treatment or training under subsection (7), the physician, hospital, clinic, or other person that renders the treatment or training must be paid or reimbursed under this chapter as follows:

(a) For a person to which subsection (2) applies, the applicable following percentage of the amount payable for the treatment or training under the person's charge description master in effect on January 1, 2019 or, if the person did not have a charge description master on that date, the applicable following percentage of the average amount the person charged for the treatment on January 1, 2019:

(i) For treatment or training rendered after July 1, 2021 and before July 2, 2022, 55%.

(ii) For treatment or training rendered after July 1, 2022 and before July 2, 2023, 54%.

(iii) For treatment or training rendered after July 1, 2023, 52.5%.

(b) For a person to which subsection (3) applies, the applicable following percentage of the amount payable for the treatment or training under the person's charge description master in effect on January 1, 2019 or, if the person did not have a charge description master on that date, the applicable following percentage of the average amount the person charged for the treatment or training on January 1, 2019:

(i) For treatment or training rendered after July 1, 2021 and before July 2, 2022, 70%.

(ii) For treatment or training rendered after July 1, 2022 and before July 2, 2023, 68%.

(iii) For treatment or training rendered after July 1, 2023, 66.5%.

(c) For a person to which subsection (5) applies, 78% of the amount payable for the treatment or training under the person's charge description master in effect on January 1, 2019 or, if the person did not have a charge description master on that date, 78% of the average amount the person charged for the treatment on January 1, 2019.

(d) For a person to which subsection (6) applies, the applicable following percentage of the amount payable for the treatment under the person's charge description master in effect on January 1, 2019 or, if the person did not have a charge description master on that date, the applicable following percentage of the average amount the person charged for the treatment on January 1, 2019:

(i) For treatment or training rendered after July 1, 2021 and before July 2, 2022, 75%.

(ii) For treatment or training rendered after July 1, 2022 and before July 2, 2023, 73%.

(iii) For treatment or training rendered after July 1, 2023, 71%.

(9) (8) For any change to an amount payable under Medicare as provided in subsection (2), (3), (5), or (6) that occurs after the effective date of the amendatory act that added this subsection, June 11, 2019, the change must be applied to the amount allowed for payment or reimbursement under that subsection. However, an amount allowed for payment or reimbursement under subsection (2), (3), (5), or (6) must not exceed the average amount charged by the physician, hospital, clinic, or other person for the treatment or training on January 1, 2019.

(10) (9) An Subject to the limitations in this subsection, an amount that is to be applied under subsection (7) or (8), that was in effect on January 1, 2019, this section, including any prior adjustments to the amount made under this subsection, must be adjusted annually by the percentage change in the medical care component of the Consumer Price Index for the year preceding the adjustment. This subsection applies only to the following:

(a) An amount that is to be applied under subsection (7)(a) that was in effect for 2019.

(b) If the United States Department of Veterans Affairs discontinues publication of a payable service and rate as described in subsection (7)(b), the applicable last known United States Department of Veterans Affairs rate.

(c) An amount that is to be applied under subsection (8) or (9) that was in effect on January 1, 2019.

(11) (10) For attendant care rendered in the injured person's home, an insurer is only required to pay benefits for attendant care up to the hourly limitation in section 315 of the worker's disability compensation act of 1969, 1969 PA 317, MCL 418.315. 112 hours per week. This subsection only applies if the attendant care is provided directly, or indirectly through another person, by any of the following:

(a) An individual who is related to the injured person.

(b) An individual who is domiciled in the household of the injured person.

(c) An individual with whom the injured person had a business or social relationship before the injury.

(12) (11) An insurer may contract to pay benefits for attendant care for more than the hourly limitation under subsection (10).(11).

(13) (12) A neurological rehabilitation clinic is not entitled to payment or reimbursement for a treatment , or rehabilitative occupational training , product, service, or accommodation unless the neurological rehabilitation clinic is accredited by the Commission on Accreditation of Rehabilitation Facilities or a similar organization recognized by the director for purposes of accreditation under this subsection. This subsection does not apply to a neurological rehabilitation clinic that is in the process of becoming accredited as required under this subsection on July 1, 2021, unless 3 years have passed since the beginning of that process and the neurological rehabilitation clinic is still not accredited.

(14) (13) Subsections (2) to (12) (13) do not apply to emergency medical services rendered by an ambulance operation. As used in this subsection:

(a) "Ambulance operation" means that term as defined in section 20902 of the public health code, 1978 PA 368, MCL 333.20902.

(b) "Emergency medical services" means that term as defined in section 20904 of the public health code, 1978 PA 368, MCL 333.20904.

(15) (14) Subsections (2) to (13) (14) apply to treatment or rehabilitative occupational training rendered after July 1, 2021.

(16) A rate or amount is payable under subsection (7) if the applicable schedule provides a rate or amount for the treatment or training regardless of any requirements for reimbursement under the program to which the schedule applies.

(17) (15) As used in this section:

(a) "Charge description master" means a uniform schedule of charges represented by the person as its gross billed charge for a given service or item, regardless of payer type.

(b) "Consumer Price Index" means the most comprehensive index of consumer prices available for this state from the United States Department of Labor, Bureau of Labor Statistics.

(c) "Emergency medical condition" means that term as defined in section 1395dd of the social security act, 42 USC 1395dd.

(d) "Home health agency" means a person that provides treatment or training to individuals in their places of residence or their communities, other than in a hospital, nursing home, or county medical care facility, that includes 1 or more of the following services:

(i) Nursing services.

(ii) Therapeutic services.

(iii) Social work services.

(iv) Home health aide services.

(v) Other related services.

(e) (d) "Level I or level II trauma center" means a hospital that is verified as a level I or level II trauma center by the American College of Surgeons Committee on Trauma.

(f) (e) "Medicaid" means a program for medical assistance established under subchapter XIX of the social security act, 42 USC 1396 to 1396w-5.1396w-6, and administered by the department of health and human services under section 105 of the social welfare act, 1939 PA 280, MCL 400.105.

(g) (f) "Medicare" means fee for service payments under part A, B, or D of the federal Medicare program established under subchapter XVIII of the social security act, 42 USC 1395 to 1395lll, without regard to the limitations unrelated to the rates in the fee schedule such as limitation or supplemental payments adjustments related to utilization, readmissions, recaptures, bad debt adjustments, or sequestration. Medicare includes payment rates for facilities reimbursed under the prospective payment systems, including the inpatient acute, inpatient psychiatric, inpatient rehabilitation, long-term acute care, skilled nursing, hospice, and outpatient prospective payment systems and any other hospital payment system designated by the United States Department of Health and Human Services. Rates include all facility adjustments, including, but not limited to, adjustments for acuity, an area wage index, capital, direct and indirect graduate medical education, all disproportionate share components, new technology, low volume, organ acquisition cost, routine and ancillary cost for allied health programs, and outlier, and any future adjustments to Medicare payment policy as identified by the director. For sole community hospitals, rural referral centers, and critical access hospitals, Medicare means the equivalent hospital-specific payment for providing inpatient or outpatient services to Medicare beneficiaries.

(h) (g) "Neurological rehabilitation clinic" means a person that provides post-acute brain and spinal rehabilitation care.

(i) (h) "Person", as provided in section 114, includes, but is not limited to, an institution.

(j) "Residential program" means services provided in a residential setting that is owned, leased, or otherwise supported by the organization providing the services. The treatment or training rendered by a residential program includes rehabilitation or stability for the injured individual's function, social health, or safety needs. A residential program may be transitional or long term.

(k) (i) "Stabilized" means that term as defined in section 1395dd of the social security act, 42 USC 1395dd.

(l) (j) "Transfer" means that term as defined in section 1395dd of the social security act, 42 USC 1395dd.

(m) (k) "Treatment" includes, but is not limited to, products, services, and accommodations.

Enacting section 1. This amendatory act applies retroactively to July 1, 2021.