LANSING, Mich. — Senate Health Policy Minority Vice Chair Michael Webber highlighted a recent report outlining the success of a 2020 law he supported while serving in the state House to protect Michigan residents against surprise medical care costs.
“As health care costs continue to rise, it is critical that state lawmakers work together to navigate complex contributing issues and develop suitable policies that ultimately protect Michigan residents,” said Webber, R-Rochester Hills. “I was proud to cast my vote in favor of the 2020 surprise medical billing law and will continue to advocate for meaningful legislation that will help to keep health care accessible and affordable for the people of Michigan.”
Public Act 234 of 2020 addressed surprise medical billing from care by a physician or facility that did not contract with their health insurer for reimbursement — considered an out-of-network provider. This can leave patients with large medical bills after they receive care — often unknowingly — from a provider who is not part of their insurer’s established network.
“The success of Michigan’s surprise billing law can be attributed to several factors. These include a hybrid approach for out-of-network disputes, clear guidelines on allowed complaints to be submitted for arbitration, and distinct rules around price negotiations when applicable — all leading to an increase in in-network providers. As a result, the law has led to fewer out-of-network claims and surprise medical bills, ultimately helping to reduce health care costs for Michigan residents,” according to an August report by The Economic Alliance for Michigan.
The 2020 law requires care providers to inform patients in advance of a scheduled procedure that their health insurer might not cover all of their medical services and give them the option to request care from an in-network provider. The number of in-network care providers in Michigan who contract with health insurers increased to 89% in 2023, compared to 85% in 2021 and 82% in 2019.
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